2000 (7) TMI 374 - AT - Central Excise

Summary

Issues:
Classification of filter elements under Sub-heading 8421.10 or 8421.90 of the Central Excise Tariff Act.

Detailed Analysis:
1. Issue of Classification: The primary issue in the appeals filed by M/s. Three F. Filters Pvt. Ltd. revolves around the classification of the filter elements they manufacture. The Appellants argue that their filter elements should be classified under Sub-heading 8421.10 as they are apparatus capable of filtering air, liquid, gas, etc. They base their argument on the definition of apparatus and references to the Explanatory Notes of H.S.N. The Department, however, contends that the filter elements are parts and should be classified under Sub-heading 8421.90. The Department's position is supported by the Assistant Commissioner's findings and the interpretation of HSN regarding oil filters for IC Engines.

2. Arguments by Appellant: The Appellants, represented by their advocate, emphasize that the filter elements they manufacture are assemblies of various components, making them complete apparatus for filtering purposes. They cite definitions of apparatus and references to HSN Explanatory Notes to support their classification under Sub-heading 8421.10, specifically mentioning oil filters for IC Engines. They challenge the Department's reliance on HSN Explanatory Notes, arguing that their product is distinct from what is referred to in those notes.

3. Arguments by Department: On the other hand, the Department, represented by the ld. DR, counters the Appellants' arguments by pointing out the Assistant Commissioner's findings that the filter elements do not function as complete machinery or apparatus on their own. They argue that the filter elements are parts meant to be fitted with other appliances for filtration, thus falling under Sub-heading 8421.90. The Department also relies on a previous decision and the Appellants' own admission regarding the use of the filter elements in their machinery.

4. Judgment: After considering both sides' submissions and examining the relevant provisions, the Tribunal concludes that the filter elements manufactured by the Appellants are to be classified under Sub-heading 8421.90. The Tribunal highlights that the Appellants failed to prove that they are producing oil filters for IC Engines and not just filtering elements used in such filters. Therefore, the Tribunal rejects all three appeals filed by the Appellants, upholding the classification under Sub-heading 8421.90 as per the Assistant Commissioner's findings and the interpretation of HSN Explanatory Notes.

In conclusion, the judgment clarifies the classification of filter elements manufactured by M/s. Three F. Filters Pvt. Ltd., emphasizing the distinction between complete machinery or apparatus and parts meant for assembly. The decision underscores the importance of providing sufficient evidence to support the classification claimed and upholds the Assistant Commissioner's findings regarding the classification under the Central Excise Tariff Act.