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2010 (3) TMI 424 - AT - Central ExciseClassification- The appellant manufacture steam Turbines as well as Hydro Turbines and also the product called H.P. Heater Assembly. The dispute in these appeals is about the classification of H.P. Heater Assembly - while according to the Department, it is classifiable under heading 84.19 of the Tariff, according to the appellant the same is classifiable under heading 84.04 as auxiliary plant for use with the boilers of heading 84.02 or 84.03. Held that- The product, in question, is clearly an economizer for pre-heating the boiler feed water by utilising the waste heat of the exhaust steam of steam turbine. Since Heading 84.04 of the Central Excise Tariff is identical to the HSN Heading 84.04, the scope of Heading 84.04 of Central Excise Tariff would be the same as the scope of Heading 84.04 of the HSN. In view of this, we hold that the impugned goods are correctly classifiable under Heading 84.04. The impugned orders are not correct. The same are set aside. The appeals are allowed.
Issues:
Classification of H.P. Heater Assembly under Central Excise Tariff - Heading 84.19 or Heading 84.04. Analysis: The dispute in the appeals revolved around the classification of the H.P. Heater Assembly under the Central Excise Tariff. The Department contended that it should be classified under Heading 84.19, while the appellant argued for classification under Heading 84.04 as an "auxiliary plant for use with boilers." The Assistant Commissioner and the Commissioner (Appeals) had previously held that the product falls under Heading 84.19 when cleared as part of complete machinery and duty is payable on merits when cleared as spares. The appellant's counsel highlighted the importance of the H.P. Heater Assembly in increasing thermal efficiency by utilizing exhaust steam to heat water for the boiler. Referring to the HSN Explanatory notes to Heading 84.04, the counsel argued that economizers for pre-heating boiler feed water using waste heat or exhaust steam fall under this heading. The counsel emphasized the identical nature of Heading 84.04 in the Central Excise Tariff and the HSN, supporting the classification under Heading 84.04. The Departmental Representative defended the impugned order, supporting the Commissioner (Appeals) findings. However, the Tribunal disagreed with the view of the Commissioner (Appeals) and upheld the appellant's argument. The Tribunal noted that the product in question functions as an economizer for pre-heating boiler feed water using waste heat from the exhaust steam of the steam turbine, aligning with the scope of Heading 84.04 in both the Central Excise Tariff and the HSN. Therefore, the Tribunal held that the H.P. Heater Assembly is correctly classifiable under Heading 84.04. Consequently, the Tribunal set aside the impugned orders, ruling in favor of the appellant and allowing the appeals. The judgment was pronounced in open court on 15-3-2010.
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