1996 (8) TMI 307 - AT - Central Excise

Summary

Issues Involved:
1. Classification of electric fans "Chiki," "Miki," "Tini," and "Mini."
2. Eligibility for benefit under Notification No. 46/84.
3. Determination of duty liability.

Issue-wise Detailed Analysis:

1. Classification of Electric Fans:
The respondents, manufacturers of electric fans, sought classification under the erstwhile Tariff Heading 33(1)(a) for their fans "Chiki," "Miki," "Tini," and "Mini," claiming the benefit of Notification No. 46/84. The Assistant Collector initially rejected this classification, arguing that these fans, due to their design, could be hung from walls or ceilings and thus did not qualify as table fans. The Collector (Appeals) overturned this decision, stating that "Chiki" and "Miki" are primarily designed as table fans but can also be fixed to walls or ceilings. Similarly, "Tini" and "Mini" were observed to have a tubular base allowing them to be placed on tables, and thus were classified as table fans.

2. Eligibility for Benefit under Notification No. 46/84:
The Revenue contested the Collector (Appeals)' decision, arguing that the fans should be classified as multi-purpose fans and not table fans, thus not eligible for the benefit of Notification No. 46/84. The Tribunal examined the literature and design of the fans and upheld the Collector (Appeals)' classification under Tariff Item 33(1). The Tribunal concluded that the fans, despite having the capability to be hung, are primarily designed as table fans and thus eligible for the benefit of the Notification, which grants a partial exemption with a duty of 5% for table fans.

3. Determination of Duty Liability:
The Vice President dissented, arguing that the fans should be classified under Tariff Item 33(3) as multi-purpose fans, not otherwise specified, and thus not eligible for the benefit under Notification No. 46/84. The Vice President emphasized the absence of detailed technical literature and observed that the fans were described as multi-purpose in the classification list. Consequently, he suggested that these fans should be classified under Tariff Item 33(3) and subjected to a higher duty rate.

Majority Opinion and Final Order:
The matter was referred to a third member due to the difference in opinion. The third member agreed with the Vice President, concluding that the fans "Tini" and "Mini" are multi-purpose and should be classified under Tariff Item 33(3). Consequently, the fans do not qualify for the benefit under Notification No. 46/84 and should be subjected to a higher duty rate of 15% ad valorem. The final order set aside the Collector (Appeals)' decision and remanded the matter for redetermination of duty liability in accordance with this classification.