1999 (6) TMI 183 - AT - Central Excise

Summary

Issues:
Classification of Ice Boxes under Central Excise Tariff Act - Chapter 39 or Chapter 94.

Analysis:
The primary issue in this appeal before the Appellate Tribunal CEGAT, New Delhi was the classification of Ice Boxes manufactured by M/s. Sinter plast Containers under the Central Excise Tariff Act. The question at hand was whether the Ice Boxes should be classified under sub-heading No. 3924.90 as decided by the Collector (Appeals) or under sub-heading 94.03 as claimed by the Revenue.

The facts presented revealed that the Respondents initially classified their product as "Polythylene tanks insulated with Rigid Polyurethane foam" under sub-heading 3925.99 and claimed benefits under specific notifications. However, the Assistant Collector reclassified the product under sub-heading 9403.00, considering it as an ice box. On appeal, the Collector (Appeals) classified the product under sub-heading 3924.90, emphasizing that it is made of plastic and considered a household item, thus falling under Chapter 39. The Collector extended certain benefits under relevant notifications and limited the duty demand period.

The arguments put forth by both sides were comprehensive. The Revenue contended that Ice Boxes should be classified under Chapter 94.03 as furniture, citing the Explanatory Notes of HSN. On the other hand, the Respondent argued that Ice Boxes fell under Chapter 39.24 as household articles of plastics, supported by specific notifications granting exemptions under Chapter 39.

Upon considering the submissions, the Tribunal referred to the Explanatory Notes of HSN and a Supreme Court judgment emphasizing the importance of internationally accepted nomenclature for tariff classification. The Tribunal concluded that Ice Boxes should be classified under Heading 94.03 of the Central Excise Tariff Act, aligning with the HSN guidelines. The Tribunal highlighted that notifications are not conclusive for classification, and the determination should be based on the terms of the headings and relevant notes.

In light of the above analysis, the Tribunal set aside the Collector (Appeals) order and allowed the appeal filed by the Revenue, thereby clarifying the classification of Ice Boxes under the Central Excise Tariff Act to be under Chapter 94.03.