1992 (8) TMI 174 - AT - Central Excise

Summary

Issues: Classification of filing cabinets and tool boxes under Central Excise Tariff Act, 1985

Classification of Filing Cabinets:
The appellants classified filing cabinets under sub-heading 8304.00 CETA 1985, while the Assistant Collector proposed to classify them under sub-heading 9403.00. The Assistant Collector applied Chapter Note 2 to Chapter 94 CETA, stating that articles in Headings 94.01 to 94.03 should be classified there only if designed for placing on the ground. The Collector of Central Excise (Appeals) upheld this classification. The appellants argued that reliance on Explanatory Notes to Harmonised System of Nomenclature (HSN) was impermissible and cited specific tariff headings as preferred. They also contended that filing cabinets were not office furniture but office equipment. The Tribunal analyzed the design and purpose of the filing cabinets, concluding that they were rightly classified under Heading 94.03 based on Chapter Note 2 and the design reflected in the catalogue.

Classification of Tool Boxes:
The appellants classified tool boxes under sub-heading 7326.90, but the Assistant Collector classified them under sub-heading 9403.00 as front-opening metal cupboards. The appellants argued that tool boxes were not furniture and should not be classified as such. The Tribunal examined the technical drawing of the tool boxes and found them similar to cupboards with shelves and hanging rods. The Explanatory Notes to HSN under Chapter 73 included tool boxes, supporting the classification. The Tribunal noted that tool boxes, being in the nature of furniture, were excluded from Chapter 73 as per Section Note 1(k) to Section XV. The Tribunal rejected the appellants' argument that reliance on technical drawings was improper, as the drawings were the appellants' own documents. The Tribunal upheld the classification of tool boxes under Heading 94.03, emphasizing that this was not a case of modifying an approved classification list but issuing a show cause notice on the filing of a new classification list.

Conclusion:
The Tribunal upheld the classification of filing cabinets under Heading 94.03 and tool boxes under Heading 94.03, rejecting the appeals against the Assistant Collector's classification. The decision emphasized the design and purpose of the products, application of Chapter Notes, and Explanatory Notes to HSN in determining the correct classification under the Central Excise Tariff Act, 1985. The judgment highlighted the importance of statutory provisions, tariff headings, and technical specifications in classification disputes.