1999 (6) TMI 219 - AT - Central Excise

Summary

Issues: Classification of Card Cans and parts thereof under the Central Excise Tariff.

In this judgment by the Appellate Tribunal CEGAT, New Delhi, the issue at hand involves the classification of Card Cans and parts thereof under the Central Excise Tariff. The appellants had initially sought classification under sub-heading No. 8448.00 as accessories of textile machinery. However, the Collector of Central Excise (Appeals), Ahmedabad ruled out this classification, deeming the Card cans as articles of plastics or articles of aluminium under different sub-headings of the Central Excise Tariff.

Upon hearing the case and considering the arguments presented, the Tribunal observed that the Card cans and silver cans were separate items with their own identity, not to be considered as parts and accessories suitable for use solely or principally for the spinning machine. Referring to a previous Tribunal decision, it was noted that Card cans were classified as articles of plastic, eligible for certain benefits under a specific notification, subject to fulfillment of stipulated conditions.

The Tribunal further analyzed the nature of the Card cans, noting that they were receptacles placed alongside the machinery but did not form an integral part that could independently function without them. It was emphasized that these cans did not participate in the mechanical functioning of the spinning machine and could not be classified as accessories. The material composition of the cans, whether plastic or aluminium, was considered based on specific requirements, but they were not to be regarded as machinery items.

Referring to the HSN Explanatory Notes under Heading No. 84.48, it was highlighted that the classification of roving or silver cans depended on their constituent material. The Tribunal reiterated a previous decision that Card cans did not meet the criteria of machinery parts and were essentially articles of plastics.

Ultimately, based on the nature of the products, their usage, and constituent material, the Tribunal upheld the view taken by the Collector of Central Excise (Appeals) Ahmedabad. Consequently, the appeals were rejected, and the original classification of the Card cans as articles of plastics or aluminium under specific sub-headings of the Central Excise Tariff was upheld.