2005 (12) TMI 139 - AT - Central Excise

Summary

Issues:
Classification of EPS moulded products, EPS sheets, and EPS blocks under tariff sub-heading 8418 as "parts of refrigerators, freezer, and other refrigerator or freezer equipment."

Analysis:
The dispute in this case revolves around the classification of EPS moulded products, EPS sheets, and EPS blocks under tariff sub-heading 8418 as "parts of refrigerators, freezer, and other refrigerator or freezer equipment." The revenue authorities argue that these items, used as insulation mouldings for freezer doors, insulation drip trays, and insulation pan baffles, should be classified under this sub-heading due to their specific use in refrigerator parts. They further contend that even though these items are not ready-to-fit parts of refrigerators, they should still be classified as parts of refrigerators since a part of a part can also be classified as a part.

The counsel for the assessee, on the other hand, argues that only identifiable parts of refrigerators or freezers should be classified under sub-heading 8418 as "parts" of these items. They assert that the items in question are merely insulating materials made to required specifications for use as fillers inside refrigerator parts. The counsel emphasizes that these articles retain their identity as insulating articles and should be classified based on their material of make, such as plastic articles falling under Chapter 39.

Both parties rely on previous Tribunal decisions in similar cases. The assessee refers to the decision in P.R. Packagings Pvt. Ltd. v. C.C.E., Delhi II, while the revenue relies on the decision in Paharpur Cooling Tower case.

After careful consideration, the Tribunal concludes that the items in question, although used in the manufacture of refrigerator parts, are not directly usable or identifiable parts of refrigerators. They are materials utilized in the production of refrigerator parts, such as doors, rather than being identifiable parts themselves. Therefore, the Tribunal opines that these items do not merit classification under sub-heading 8418.90 as parts of refrigerators but should be appropriately classified under Chapter 39 as articles of the material they are made of. The Tribunal distinguishes the present case from the Paharpur Cooling Tower case, which dealt with the classification of imported Fill Pack assembly for a molded cooling tower.

In the final judgment, Appeal No. E/1569/-4-NB(C) of M/s. NPI Packaging (P) Ltd. is allowed, while Appeal No. E/3349/03-NB(C) of the Revenue is rejected. Additionally, Appeal No. 1319/04-NB(C) of the Revenue, seeking imposition of a penalty based on a different classification, is also rejected since the Tribunal's classification differs from that sought by the revenue. Consequently, all appeals are decided accordingly.