1998 (5) TMI 140 - AT - Central Excise

Summary

Issues: Classification of plastic stand for refrigerators under Central Excise Tariff - Chapter 39 vs. Chapter 94

Issue 1: Classification under Chapter sub-heading 3926.90 as 'plastic article' vs. classification under Heading 94.03 as articles of Furniture

The appeal concerns the classification of a Plastic Stand for Refrigerators under the Central Excise Tariff. The Appellant sought classification under Chapter sub-heading 3926.90 as a 'plastic article,' while the Revenue proposed classification under Heading 94.03 as articles of Furniture, denying the benefit of exemption Notification No. 14/92 applicable to plastic articles. The Assistant Collector ruled in favor of the Appellant, granting the benefit of the notification. However, the Commissioner (Appeals) disagreed and ruled against the Appellant, leading to the present appeal.

Issue 2: Interpretation of relevant tariff headings and rules

The dispute revolves around the interpretation of Chapter 39, which deals with 'Plastics and Articles thereof,' and Chapter 94, which pertains to 'Furniture.' Both sides argued without the support of specific chapter notes differentiating between plastic articles and furniture made of plastic. However, Interpretative Rule 3(a) was invoked, stating that the more specific description prevails over the general one. The contention was that 'furniture' is a more specific description indicating the article's use, while 'plastic articles' is a generic term. The HSN explanatory notes under Section XX further clarified that items like stands for various purposes fall under 'Other furniture and parts thereof,' supporting the classification under Heading 94.03.

Issue 3: Comparison with international classification standards

The judgment also considered the Harmonized System of Nomenclature (HSN) explanatory notes, which align with the Central Excise Tariff. The HSN's Chapter 94 heading matches the Central Excise Tariff's Chapter 94 heading, with Heading 94.03 covering 'Other furniture and parts thereof.' The HSN notes explicitly include various stands and pedestals under this heading, reinforcing the argument that the Plastic Stand for Refrigerators could be classified as furniture. The decision cited a precedent where a trolley for an air cooler was considered furniture, further supporting the classification under Heading 94.03.

Issue 4: Use of dictionary meaning vs. HSN explanatory notes

A dictionary definition of 'Furniture' was presented by the Appellant to support their classification argument. However, the Tribunal emphasized that such matters should be guided by the HSN explanatory notes rather than a dictionary definition, which may not be comprehensive. Relying on the HSN scheme and explanatory notes, the Tribunal concurred with the Commissioner (Appeals)' view and dismissed the appeal, reinforcing the classification under Heading 94.03 for the Plastic Stand for Refrigerators.

In conclusion, the Appellate Tribunal upheld the classification of the Plastic Stand for Refrigerators under Heading 94.03 as articles of Furniture, denying the benefit of exemption under Notification No. 14/92 applicable to plastic articles. The judgment highlighted the importance of specific descriptions, international classification standards, and interpretative rules in determining the appropriate classification under the Central Excise Tariff.