1987 (8) TMI 188 - AT - Central Excise

Summary

Issues: Classification of goods under Tariff Heading 84.45/48 or 84.49 of the CTA 1975.

In this judgment, the main issue revolves around the classification of goods described as "Complete Power Chain Saw Model PM 700 with 24" Sprocket Nose Bar along with 370G IPL Owner's Manual, Spike Tool Kit, Wrench etc. and spares for the above." The Department contends that the goods should be classified under Tariff Heading 84.49, which covers "Tools for working in the hand, pneumatic or with self-contained non-electric motor." The Department argues that the Power Chain Saw is designed for hand use, is lightweight, and fits the description of tools for working in the hand as per the Explanatory Notes of CCCN. The Department asserts that the goods should be assessed under Heading 84.49 and are liable to countervailing duty under Item 51 CET.

On the other hand, the respondents argue that the Power Chain Saw cannot be operated without the Chain Saw Mill attachment, which adds significant weight to the equipment. They claim that the combined weight of the attachment and the Power Chain Saw makes it unsuitable for hand use and should not be classified under Heading 84.49. The respondents also rely on past assessments and a previous Tribunal decision involving a similar heavy machine to support their argument against classification under Tariff Heading 84.49.

After considering both arguments, the Tribunal agrees with the Department's position. The Tribunal finds that the Power Chain Saw in question is designed for hand use, as evidenced by the catalog produced by the respondents. The Tribunal dismisses the argument that the attachment's weight should be added to the Power Chain Saw's weight for classification purposes, noting that the attachment is for specific jobs and does not hinder hand operation of the saw. The Tribunal distinguishes the present case from the previous Tribunal decision involving a heavy machine, emphasizing that the Power Chain Saw's weight and design allow for hand operation. Additionally, the Tribunal points out that Tariff Heading 84.45/48 excludes machines falling under Heading 84.49, necessitating the classification of the Power Chain Saw under Heading 84.49. The Tribunal concludes that the goods are correctly classifiable under Tariff Heading 84.49, and past assessments do not prevent the Department from rectifying the classification in this case.

Ultimately, the Tribunal allows the Department's appeal, affirming the classification of the Power Chain Saw under Tariff Heading 84.49 and the imposition of countervailing duty under Item 51 CET.