1997 (7) TMI 302 - AT - Central Excise

Summary

Issues: Classification of products under Heading No. 73.08 vs. Heading No. 84.16

In this case, the issue involves the classification of three products - knockout drum, stack, and ladder - used in a waste gas recovery system by a company. The company sought classification under Heading No. 73.08 as other articles of iron and steel. The Assistant Collector of Central Excise classified the items under Heading No. 84.16, considering them as parts of a machine. The Collector of Central Excise (Appeals) Bombay upheld this classification, leading to the appeal.

Analysis:

The appellant argued that when the items were supplied separately, they should be classified under Heading No. 73.08. However, they were supplied to industries with waste gas recovery systems, indicating their association with the system. The ladder, a general-purpose item, was also supplied separately. The appellant contended that the classification under Heading No. 73.08 was appropriate.

Upon examination, the Tribunal found that the appellant's main product was described as "other articles of iron and steel for flair system." The knockout drum, stack, and ladder were part of the waste gas recovery system, as evidenced by technical documentation. Even though supplied separately, these items were integral components of the system and not general-purpose items.

The Tribunal noted that Heading No. 73.08 covered articles of iron or steel, such as hardware items and products like stoves. In contrast, the appellant's products were sophisticated and served high-tech industrial systems for environmental benefits. The final products were classified under Heading No. 84.16, and the disputed items were also related to goods under this heading.

Considering the classification rules, parts not specifically described in Chapter 84 or 85 were to be classified with the machine if suitable for use with it. As the appellant's final products were under Chapter 84 and correctly classified under Heading 84.16, the three disputed products were deemed to fall under the same heading. Therefore, the Tribunal upheld the Collector of Central Excise (Appeals) Bombay's decision, rejecting the appeal due to the correct classification under Heading No. 84.16.

In conclusion, the judgment settled the dispute by affirming the classification of the products under Heading No. 84.16 instead of Heading No. 73.08, based on their association with the waste gas recovery system and the specific classification rules outlined in the Tariff.