2000 (8) TMI 408 - AT - Central Excise

Summary

Issues: Classification of Skid Mounted Transportable Service Unit under sub-headings 8414.80 and 8479.00

Classification under 8479.00:
The Revenue appealed against the rejection of departmental appeals by the Commissioner (Appeals) regarding the classification of Skid Mounted Transportable Service Unit under sub-heading 8479.00. The Assistant Commissioner initially accepted the assessee's classification claim under 8479.00, which was appealed against by the Revenue. The Commissioner (Appeals) rejected the departmental appeals, citing that the unit's functions, including cleaning, lubricating, and filling oil, did not have a principal function. Note 7 of Chapter 84 was invoked, leading to classification under 8479.00. The Revenue contended that the item should be classified under heading 8467.00 using Interpretative Rule 3(b.

Tribunal's Decision and Analysis:
The Tribunal analyzed the functions of the Skid Mounted Transportable Service Unit and upheld the classification under sub-heading 8479.00. Referring to a previous Tribunal decision, the Tribunal emphasized that the principal function of the unit should be considered based on its design, such as inflating tires or high-pressure greasing. Consequently, the unit was assessed under the residual heading 84.79, covering machinery with individual functions. The Tribunal dismissed the Revenue's appeals, citing consistency with the previous decision and the acceptance of classification by the assessee.

Conclusion:
The Tribunal upheld the classification of the Skid Mounted Transportable Service Unit under sub-heading 8479.00, dismissing the Revenue's appeals. The decision was based on the unit's functions and design, aligning with the interpretation of Chapter notes and the Harmonized System Nomenclature. The Tribunal's ruling emphasized the importance of determining the principal function of the unit for accurate classification under the relevant headings and rules.