1995 (9) TMI 187 - AT - Central Excise

Summary

Issues: Classification of spin dryer under Central Excise Tariff and applicability of exemption under Notification No. 33/69.

The judgment revolves around the classification of a spin dryer under the Central Excise Tariff and the applicability of exemption under Notification No. 33/69. The case involves M/s. Racold Appliances Pvt. Ltd. manufacturing domestic electric appliances, specifically a spin dryer, which was initially classified under Tariff Item 68 but later disputed by the authorities.

The Assistant Collector initially classified the spin dryer under Tariff Item 33C due to its in-built electrical device and domestic usage, exempting it from Central Excise duty under Notification No. 33/69. However, the Appellant Collector disagreed, asserting that the spin dryer falls under dutiable varieties mentioned in the Notification and directed an appeal application to be filed.

In the appeal, the Appellate Collector determined that the spin dryer, designed for drying clothes through centrifugal force, does not qualify as a clothes washing machine specified in the Notification. The Collector (Appeals) rejected the appeal, emphasizing the distinction between washing and drying functions in separate appliances, classifying dryers under a different heading in the Central Excise Tariff Act.

The judgment analyzed the design and function of the spin dryer, noting its components and operation for drying clothes post-washing. It highlighted that the spin dryer, as a standalone unit performing only drying functions, should not be categorized as a clothes washing machine to deny it the exemption under Item 33C Central Excise Tariff.

The judgment concluded by upholding the Collector (Appeals) decision, rejecting the appeal and dismissing the cross-objection. It emphasized the distinction between washing and drying machines, affirming that the spin dryer's specific function warrants its classification apart from clothes washing machines under the Central Excise Tariff Act.