1996 (9) TMI 432 - AT - Central Excise

Summary

Issues: Classification of Finned Tubes for Air Coolers/Heat Exchangers and GFRP Fan Housing Segments under the Customs Tariff Act.

In this case, the appellant appealed against the order of the Collector (Appeals) Ghaziabad concerning the correct classification of two items: Finned Tubes for Air Coolers/Heat Exchangers and GFRP Fan Housing Segments. The appellant contended that while the Fan Housing Segments are part of the Cooling Tower equipment, the Finned Tubes are not. The authorities had classified both items under the same heading as the Cooling Tower component without providing a reason or basis for their decision. The appellant argued that the authorities did not consider their submissions and failed to provide any supporting material for their classification decision. The appellant requested the order regarding the Finned Tubes to be set aside and remanded for further verification by the Assistant Collector.

Regarding the GFRP Fan Housing Segments, the appellant argued that despite being made of plastic, they are component parts of the Cooling Tower and should be classified under the same heading as the Cooling Tower equipment under Heading 84.19. However, the Collector (Appeals) had classified them under a different heading based on a circular, which the appellant contested. The appellant requested the authorities to classify the Fan Housing Segments along with the Cooling Tower under Heading 84.19. The Departmental Representative supported the impugned order.

The Tribunal observed that the appellant's contentions were valid. Concerning the Finned Tubes, the Tribunal noted that the authorities had not provided a basis for their classification decision, rendering the order non-speaking on this point. Therefore, the Tribunal set aside the order related to the Finned Tubes and remanded the matter to the Assistant Collector for a fresh consideration after necessary verification. The appellant was granted an opportunity to be heard and present relevant material.

As for the GFRP Fan Housing Segments, the Tribunal ruled that they are parts of the Cooling Tower and should be classified under Heading 84.19 in accordance with Section Note 2(b). The Tribunal accepted the appeal in favor of the appellant, directing the classification of the Fan Housing Segments under the appropriate heading.