1997 (7) TMI 388 - AT - Central Excise

Issues Involved:
1. Classification of goods described as kitchen tables, work tables, service counters, and SS stands.
2. Applicability of Heading 94.03 versus Heading 73.23.
3. Consideration of HSN notes and previous Tribunal decisions.
4. Burden of proof for classification.

Detailed Analysis:

1. Classification of Goods:
The central issue in the appeal is the classification of goods described as kitchen tables, work tables, service counters, and SS stands. The Revenue sought to classify these items under Heading 94.03, while the assessee claimed classification under Heading 73.23. The original authority classified the goods under Heading 94.03, but the learned CCE(A) reclassified them under Heading 73.23.

2. Applicability of Heading 94.03 versus Heading 73.23:
- Heading 94.03: "Other furniture and parts thereof."
- Heading 73.23: "Table, kitchen or other household articles and parts thereof, of iron or steel wool, pot scourers and scouring or polishing pads, gloves and the like of iron or steel."

The CCE(A) referred to the HSN notes for Heading 73.23, which elaborate on the scope of this tariff heading. The Tribunal's decision in the case of M/s. Tata Engg. and Locomotive Co. Ltd. was cited, which ruled that certain steel items not meant for use or decoration in dwelling houses, places of business, or public or private buildings but designed for use in works do not qualify as steel furniture under item 40 of the CET. Similarly, in the case of Steel Authority of India Ltd., the Tribunal ruled that such goods are not commonly known as "furniture" and are not bought and sold in the market as "furniture."

3. Consideration of HSN Notes and Previous Tribunal Decisions:
The lower appellate authority relied on the Tribunal's decisions and the HSN notes, concluding that the goods in question are not popularly known or commercially classified as "furniture." Therefore, they should be classified under Heading 73.23. However, the Revenue argued that Note 2 to Chapter 94 specifies that articles designed for placing on the floor or ground fall under Heading 94.03 and that the explanatory notes to the HSN extend the coverage of Heading 94.03 to "furniture for special use," applicable in hotels and private dwellings.

The Tribunal analyzed the scope of tariff heading 73.23 and found that it covers a wide range of iron or steel articles used for table, kitchen, or other household purposes, including those used in hotels, restaurants, boarding houses, hospitals, canteens, barracks, etc. The Tribunal noted that the goods in question do not fit within this range of articles as covered by the HSN.

4. Burden of Proof for Classification:
The Chartered Accountant for the respondents argued that the burden is on the department to show that the goods do not fall under Heading 73.23. The Tribunal referred to the Supreme Court's decision in Wood Craft Products v. C.C.E., which held that the Central Excise Tariff is based on the HSN and that any dispute relating to tariff classification should be resolved with reference to the HSN unless there is an express different intention indicated by the Central Excise Tariff Act, 1985.

The Tribunal concluded that the lower appellate authority could not have assessed the goods under Heading 73.23. The scope of tariff Heading 94.03, as set out under the HSN, covers furniture for general use and special uses, including items used in hotels and for specialized purposes. The Tribunal held that the goods in question could be classified under Heading 94.03, as they are capable of being placed on the ground and are akin to items of furniture.

Conclusion:
The Tribunal allowed the appeal of the Revenue, holding that the goods are rightly classifiable under Heading 94.03 as held by the original authority. The case law cited in the context of erstwhile item No. 40 was deemed not relevant, and reliance was placed on the HSN for resolving the classification dispute.

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