1998 (8) TMI 261 - AT - Central Excise

Benefit of Notification No. 60/86-C.E. - Particle board cut into rectangular pieces of board

Summary

Issues:
Identification of particle board as an essential component of steel furniture for excise duty classification under Notification No. 60/86-C.E.

Analysis:
The case revolves around determining whether particle boards supplied by the appellants to steel furniture manufacturers qualify as identifiable essential components of steel furniture, impacting their classification under Notification No. 60/86-C.E. The Additional Collector of Central Excise, Ahmedabad, contended that the laminated particle boards supplied were indeed essential components of steel furniture, thus denying the benefit of the mentioned notification.

The appellant argued that the particle boards had multiple uses beyond steel furniture, lacking a specific design making them identifiable as essential parts of steel furniture. The appellant's advocate highlighted the need for proper classification, suggesting remand for such determination. Even if considered parts of steel furniture, the appellant emphasized that the boards lacked special shapes or designs to be classified as essential components.

On the contrary, the respondent maintained that since the boards were used as table tops for steel furniture, they should be classified as parts of steel furniture, citing a Tribunal judgment supporting the requirement for evidence of multiple uses. The appellant rebutted, asserting that judicial notice should suffice for recognizing the boards' various applications, including as wooden furniture components or partitions.

The Tribunal, after considering both sides' arguments, found that the particle boards were standard rectangular pieces without specific shapes or designs identifying them as essential parts of steel furniture. Merely cutting them to size did not alter their general usability, leading to the conclusion that the benefit of Notification No. 60/86 should apply. Consequently, the impugned order was set aside, granting relief to the appellant.

This judgment clarifies the criteria for classifying particle boards as essential components of steel furniture under Notification No. 60/86-C.E., emphasizing the need for specific shapes or designs to distinguish them as such. The decision underscores the importance of considering the actual use and characteristics of the goods in question while determining their classification for excise duty benefits, ensuring a fair and accurate application of relevant notifications and regulations.