1997 (3) TMI 312 - AT - Central Excise

Summary

Issues: Classification of Tubular Steel Coils for Machinery

Issue 1: Classification Dispute
The appeal concerns the classification of Tubular Steel Coils for machinery by M/s. Stewarts and Lloyds of India Ltd. The appellant sought classification under Heading No. 73.03 of the Central Excise Tariff Act, while the Collector of Central Excise classified them under Heading No. 84.04.

Analysis:
The dispute revolves around whether the Tubular Steel Coils should be classified as tubes and pipes under Heading No. 73.03 or as parts of machinery under Heading No. 84.04. The appellant argued for classification under Heading No. 73.03 based on the Supreme Court decision in Bharat Forge case, emphasizing that the goods were tubes and pipes. The Revenue contended that the coils were specifically made for use in superheaters and economisers, thus falling under Heading No. 84.04.

Issue 2: Classification Criteria
The classification of the Tubular Steel Coils under the Central Excise Tariff Act was scrutinized. The goods were described as Pipe Coils for superheaters and economisers by the appellant. The adjudicating authority classified them under Heading No. 84.04 based on the indication of economiser in that heading.

Analysis:
The Tribunal examined the manufacturing process of the Tubular Steel Coils, emphasizing that they were not ordinary pipes or tubes but were specifically designed for use in machinery like superheaters and economisers. The goods were found to be distinct from regular pipes and tubes, tailored for specific engineering purposes, as per the product literature provided.

Issue 3: Legal Interpretation
The legal interpretation of the Central Excise Tariff Act and the Customs Co-operation Council Nomenclature was crucial in determining the correct classification of the Tubular Steel Coils. The alignment of the Central Excise Tariff with the Customs Tariff and the relevant Explanatory Notes were considered.

Analysis:
The Tribunal analyzed the alignment of the Central Excise Tariff with the Customs Tariff and the applicability of the Explanatory Notes. It was highlighted that the goods in question, having lost their basic character as pipes and tubes after being converted into tubular coils, were rightly classified under Heading No. 84.04.

Conclusion:
The Tribunal upheld the classification of the Tubular Steel Coils under Heading No. 84.04, emphasizing their specific design for use in superheaters and economisers. The appeal was rejected based on the detailed analysis of the manufacturing process, product characteristics, and legal provisions governing the classification of goods under the Central Excise Tariff Act.