2000 (9) TMI 500 - AT - Central Excise

Summary

Issues:
Classification of float wash, water shower, and water filter under specific headings.

Analysis:

1. Classification Dispute:
The dispute in this case revolves around the correct classification of float wash, water shower, and water filter. The appellant claims that water shower falls under heading 8424.10, while the other two products are classified under heading 84.21. On the contrary, the Department argues that since these products are used in a factory manufacturing paper, they should be classified as parts of paper-making machinery under heading 8439.90.

2. Appellant's Argument:
The appellant's consultant argues that the products are not exclusively used in paper-making machinery but serve the purpose of filtering or purifying liquids. He points out that heading 8421 specifically mentions "filtering or purifying machinery and apparatus for liquids or gases," supporting the classification of water filter and float wash under this heading. Additionally, he asserts that the water shower is a mechanical appliance for dispersing liquids, justifying its classification under heading 84.24.

3. Revenue's Position:
The Revenue, represented by the SDR, supports the classification of the items along with other parts of paper-making machinery under Section Note 3 of Section (xvi). They argue that these items complement the function of paper-making machinery and should be classified accordingly.

4. Consideration of the Issue:
The Tribunal carefully considers the functions of the items in question and the relevant Section Note 3 of Section (xvi). The Assistant Commissioner's interpretation emphasizes that these items prepare the paper-making machinery for paper manufacture, leading to their classification under heading 8439.90 as complementary functioning parts of paper-making machinery.

5. Decision and Rationale:
Despite the Revenue's arguments, the Tribunal finds that the goods are specifically mentioned under headings 84.24 and 84.21, and not as parts of paper-making machinery. Referring to Section Note 2 of Section XVI, the Tribunal concludes that since the goods are covered by specific headings, they should be classified accordingly. Moreover, the items are not exclusively used in paper-making machinery but serve general purposes like filtering and cleaning. Therefore, the Tribunal sets aside the impugned order and allows the appeal in favor of the appellants, providing consequential relief.

In conclusion, the Tribunal's decision emphasizes the importance of specific headings in classification and the functional purpose of the items in question, ultimately leading to the classification of float wash, water shower, and water filter under their respective headings rather than as parts of paper-making machinery.