1994 (7) TMI 135 - AT - Central Excise

Summary

Issues: Classification of stainless steel kitchen sinks under Tariff Heading 73.23 CETA, 1985 and eligibility for exemption under Notification 175/88-C.E., dated 13-5-1988 as amended by Notification 63/91-C.E., dated 25-7-1991.

Analysis:
1. The appellants manufactured stainless steel kitchen sinks and filed for classification under Tariff Heading 73.23 CETA, 1985, claiming exemption under specific notifications. The Assistant Collector upheld their classification and entitlement to the notification benefits.
2. The Collector directed an application for reclassification under Tariff Heading 73.24, denying the notification benefits. The appeal challenges this decision before the Tribunal.
3. The appellants argued that the Collector applied his notion of 'sanitaryware' without proper evidence or considering commercial parlance. They cited various evidence, including Supreme Court rulings on the interpretation of 'sanitary fittings.'
3.1. The advocate highlighted that 'sanitary fittings' refer to materials used in lavatories, urinals, or bathrooms, and the burden of proof lies on the revenue to show the intended use. The term 'sanitary fittings' does not include heavy pipes laid underground for water supply.
3.2. The advocate emphasized discrepancies between HSN and CETA headings, supporting their classification under Heading 73.23 based on HSN Explanatory Notes.
4. The Respondent argued that kitchen sinks are known as 'sanitaryware' in commercial terms, supported by a catalog mentioning 'exquisite kitchen sinks' as part of sanitaryware. They contended that the kitchen sink's connection to drain pipes for disposing of waste supports this classification.
4.1. The Tribunal agreed with the Respondent, distinguishing the present context from the Supreme Court ruling. They noted that kitchen sinks are akin to wash basins and movable articles under Heading 73.23, aligning with HSN sub-heading 73.24.10.
5. Consequently, the Tribunal rejected the appeal, affirming the classification of stainless steel kitchen sinks under Tariff Heading 73.24 CETA, 1985, and denying exemption benefits under the specific notifications.