1999 (8) TMI 499 - AT - Central Excise

Summary

Issues:
Appeal against central excise duty demand based on classification of goods as parts of fire extinguishers.

Analysis:
The appeal was against an Order-in-Appeal confirming a demand of central excise duty on the appellants. The main grounds of appeal were: (a) the order went beyond the show cause notice by classifying the goods as parts of fire extinguishers instead of fire extinguishers in CKD condition, and (b) the goods were not marketable as they were designed for assembly into the appellants' own brand fire extinguishers. The Department argued that the goods were indeed parts of fire extinguishers, not the final product, and that they were marketable as evidenced by sales for replacement purposes.

The Tribunal analyzed the case and found that the goods lacked the essential characteristics of fire extinguishers, supporting the classification as parts. The appellants failed to provide detailed justification for their classification claim. The nature of the parts, including washers, nozzles, hoses, rubber bushings, and cartridges, was considered, with no evidence presented by the appellants to challenge the classification. Additionally, the Tribunal noted evidence of sales of these parts for replacement purposes, contradicting the appellants' claim of non-marketable goods.

Ultimately, the Tribunal concluded that the show cause notice correctly alleged the goods as parts of fire extinguishers, and the Order-in-Appeal upheld this classification based on detailed reasoning. The appeal was dismissed due to the lack of merit in the appellants' arguments and the supporting evidence for the classification of the goods as parts of fire extinguishers.