2000 (7) TMI 514 - AT - Central Excise

Summary

Issues:
Classification of "Electro Magnetic Feeder" under Heading 8479.00 or 8505.00.

Analysis:
The dispute in the present appeal revolves around the classification of the final product, an "Electro Magnetic Feeder." The appellants initially claimed its classification under Heading 8479.00, but a show cause notice prompted a reconsideration under Heading 8505.00. The Assistant Commissioner sided with the respondents, classifying the product under Heading 8479.00. Subsequently, the Revenue appealed this decision, leading to the current case. The Asstt. Commissioner's rationale for classifying the product under Heading 8479.00 was based on the machine's functionality as a feeder for controlled material supply, creating vibrations in line with supply cycles. The Commissioner (Appeals) concurred with this view, emphasizing that the device operates as a mechanical device and not an electrical appliance, justifying its classification under Heading 84.79.

The Asstt. Commissioner's decision was supported by the fact that the feeder machine's parts and accessories, such as the coil/feeder coil, were classified under Heading 85.05, leading to the conclusion that the feeder machine should be classified under Heading 84.79. The conversion kit, comprising various parts like shafts and bearings, was also deemed to fall under Heading 84.83, attracting a 20% duty. The Excitor Unit or Magnetic unit, previously classified under Heading 8479.00, was argued to be incorrectly classified under Heading 8505.00, as it does not function as an electro or permanent magnet. Consequently, the Asstt. Commissioner classified it under Heading 8479.00, in alignment with the machine.

The Commissioner (Appeals) upheld the Asstt. Commissioner's decision, emphasizing that the literature provided by the respondent demonstrated the feeder's mechanical nature, operating on the micro-throw principle to discharge bulk solids. This mechanical functionality, coupled with the absence of classification elsewhere, justified its placement under Heading 84.79. The Exciter unit/Magnetic unit was also deemed appropriately classified under Heading 84.79, in accordance with Note 2(b) of Section XVI of the Central Excise Tariff Act, 1985.

The Revenue's appeal primarily challenged the Commissioner (Appeals)'s reliance on the product literature instead of the HSN explanatory notes. However, the Tribunal upheld the decision, noting that consulting the product literature was essential to understand the technical aspects and functions of the item. As the Revenue did not contest the finding that the product was a mechanical device, the appeal was dismissed, affirming the classification under Heading 84.79 and rejecting the Revenue's contentions.

This comprehensive analysis showcases the intricate classification dispute over the "Electro Magnetic Feeder," highlighting the reasoning behind the classification under Heading 84.79 and the rejection of the Revenue's appeal based on the product's mechanical nature and operational functionality.