2006 (10) TMI 2 - SC - Central Excise

Central Excise Furniture Petitioners contended that storage cabinets, kitchen counters, conference tables erected at site of customers are fixtures and not furniture and being not movable such items are not excisable Impugned order set aside Matter remanded to Tribunal to pass fresh order

Summary

Issues:
Classification of storage units, kitchen counters, reception/conference tables as excisable furniture.

Analysis:
The appeal in this case was filed against the order of the Customs, Excise and Service Tax Appellate Tribunal regarding the classification of certain items as excisable goods. The appellant, a private limited company, undertakes activities including manufacturing furniture as part of its services. The dispute arose when the Central Excise authorities alleged that the items produced by the appellant, such as storage units and conference tables, were excisable goods falling under Chapter 9404. The appellant argued that these items should not be considered excisable goods as they result in the emergence of immovable property.

The main issue for consideration in this case was whether storage units, kitchen counters, and other similar items were excisable as furniture. The appellant's counsels contended that these items should be classified as fixtures and not furniture, thus exempt from excise duty. They argued that the items were not movable objects complete before being placed on the floor or ground, as required under Chapter Sub-heading 9403 of the Central Excise Tariff Act, 1985.

The court examined various dictionary definitions of 'furniture,' which typically refer to movable articles like tables and chairs used for living or working spaces. The court agreed with the appellant's argument that items like storage units and kitchen counters, which cannot be removed without cannibalizing, are fixtures and not excisable furniture under Sub-heading 9403. The judgment emphasized that items like tables, desks, and chairs are considered furniture and excisable, even if affixed to the ground.

In conclusion, the court allowed the appeals, setting aside the previous orders and remitting the matter back to the Tribunal for a fresh decision. The judgment highlighted the importance of interpreting words based on popular meanings rather than just etymological definitions. The decision clarified that certain items like storage units and kitchen counters are not excisable furniture, while traditional furniture items remain subject to excise duty.