1998 (7) TMI 298 - AT - Central Excise

Summary

Issues Involved:
1. Classification of decorative tops of a refrigerator under Tariff Heading 84.18 or Tariff Heading 94.03.

Analysis:
The main issue in this case revolves around determining whether the decorative tops of a refrigerator should be classified under Tariff Heading 84.18 as a part of the refrigerator or under Tariff Heading 94.03 as "other furniture and part thereof." The lower authority initially ruled that the decorative tops do not fall under Heading 84.18. The appellate tribunal examined the nature and design of the decorative tops to ascertain their classification. The tribunal noted that the decorative tops are optional features or accessories for the refrigerator, used for decoration and additional protection against rusting. It was observed that customers acquire these decorative tops as optional items, not essential parts of the refrigerator. The tribunal analyzed the legislative intent and various judicial precedents cited by the appellants to support their claim.

The Revenue appealed against the lower authority's decision, arguing that the decorative tops should be considered furniture specially designed as part of the refrigerator under Chapter Note (e) of Chapter 94. The Revenue contended that since the decorative tops are furniture and part of the refrigerator, they should be covered by Tariff Heading 84.18. However, the tribunal disagreed with the Revenue's argument, emphasizing that the decorative tops are not essential for the functioning of the refrigerator. The tribunal interpreted Chapter Note 1(e) to exclude only furniture specifically designed as part of a refrigerator under Heading No. 84.18, not any other furniture. The tribunal provided an example of a "cabinet" as a type of furniture covered by Chapter Note 1(e), distinguishing it from the decorative tops in question.

After thorough deliberation, the tribunal dismissed the Revenue's appeal and upheld the lower appellate authority's findings. The tribunal concluded that the decorative tops of the refrigerator should not be classified under Chapter Note 1(e) of Chapter 94, affirming that they do not fall under Tariff Heading 84.18. The decision was based on the non-essential nature of the decorative tops for the functioning of the refrigerator and the specific interpretation of the relevant legislative provisions and notes.