2001 (6) TMI 344 - AT - Central Excise

Summary

Issues involved:
Classification of parts of humidification and ventilation plants under Heading 84.79 of the Schedule to the Central Excise Tariff Act or under Chapter 39 of the Tariff.

Analysis:
The appeal filed by M/s. Pack Plast Industries concerns the classification of parts of humidification and ventilation plants under Heading 84.79 or Chapter 39 of the Tariff. The appellant, represented by Shri L.P. Asthana, argued that Mist Eliminators, a specific part of humidification plants, should be classified under Heading 84.79. The appellant highlighted the technological advancements in manufacturing these parts out of plastics for longevity and explained the operational process of humidification plants. Reference was made to relevant notes in the Tariff indicating that parts suitable for use with a particular kind of machinery should be classified with that machinery. The appellant also relied on a previous decision regarding the classification of cooling tower parts to support their argument.

On the other hand, Shri Ashok Kumar, representing the Department, contended that Mist Eliminators are essentially PVC Profiles and should be classified under Heading 39.16 of the Tariff. Reference was made to previous decisions regarding the classification of plastic articles and iron and steel profiles to counter the appellant's argument.

Upon considering the submissions, it was noted that Mist Eliminators are indeed used in the manufacture of humidification plants, a fact not disputed by the Department. The Collector (Appeals) did not accept the appellant's contention primarily because the parts were also sold independently, and it was not proven that they were used as replacements in existing plants. However, since the use of Mist Eliminators in humidification plants was undisputed, they should be classified along with the plant under Note 2(b) to Section XVI of the Tariff. This note specifies that parts suitable for use solely or principally with a particular machine should be classified with that machine. It was emphasized that Mist Eliminators are not considered parts of general use, and no evidence was presented to the contrary. The decision in the Nova Iron and Steel case was deemed inapplicable as the Mist Eliminators were integral to the functioning of the humidification plant. Consequently, the Mist Eliminators were classified under Heading 84.79, while other goods remained classified under Chapter 39 as ordered by the lower authorities. The appeal was allowed solely in respect of Mist Eliminators.