1998 (2) TMI 193 - AT - Central Excise

Summary

Issues:
Correct classification of a barrel intended for mobile transport of liquid nitrogen under Tariff Heading 8479, Heading 8609, or Heading 8707.

Analysis:
The appeal involved the determination of the appropriate classification of a barrel intended for mobile transport of liquid nitrogen. The respondents claimed classification under Tariff Heading 8479 or, alternatively, under Heading 8609. The Asstt. Collector initially rejected the claims and classified the goods under Heading 8707. However, in appeal, the Collector (Appeals) accepted the claim for classification under Heading 8609, leading to the Revenue Appeal.

The appellant argued that the barrels should be classified as bodies for motor vehicles under Heading 8707, as they are bodies for motor vehicles according to the Harmonized System of Nomenclature (HSN) Notes. The appellant contended that the barrels are integral parts of motor vehicles and should be classified accordingly.

On the other hand, the respondents argued that the barrels are not bodies for chassis but are containers secured to the chassis for the transport of materials. They emphasized that the barrels are not integral parts of motor vehicles and can be disconnected from the chassis, indicating that they should be classified under Heading 8609.

The Tribunal examined the competing entries of Heading 8609 and Heading 8707. The HSN Notes clarified that containers under Heading 8609 are specially designed for transport by various modes and equipped with fittings for handling and securing on vehicles. The containers are suitable for door-to-door transport without repacking and are intended for repeated use. The Tribunal noted that the containers in question were secured to the chassis with specific couplings and fittings, as evidenced by a drawing presented in court. Based on this evidence and the HSN Notes, the Tribunal concluded that the goods should be classified under Heading 8609.

Therefore, the Tribunal rejected the Revenue Appeal and upheld the classification of the barrels under Heading 8609. The Tribunal also ruled out Heading 8479 for classification, as conceded by the respondents' advocate during the proceedings.