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TMI Blog1988 (8) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... by them for homes and offices were purchased from outside and that the goods in question were not conventional steel furniture within the meaning of Item No. 40 CET because they were shop floor equipment s made of thick gauge metal and designed and built for the use of workers in the course of manufacturing activities. They did not conform to any standard specifications and were not available in the market. In due course, the Additional Collector of Central Excise, Patna, passed an order on 16-7-1982 holding the subject goods to be steel furniture falling under Item No. 40 CET. He ordered that the Assistant Collector should redetermine the duty liability keeping in view Central Excise Notification No. 33/71, dated 1-4-1971, as amended by Notification No. 181/72, dated 17-3-1972. He also imposed a penalty of Rs. 1,500/- on the appellants under Central Excise Rules 173Q(1). TELCO filed an appeal against this order to the Central Board of Excise Customs which has come on transfer to this Tribunal to be disposed of as if it were an appeal filed before the Tribunal. 2. At the instance of the Bench, the appellants furnished a write up on each of the articles in dispute. Photographs o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s furniture for the purpose of Item No. 40 of the CET. Most of the other judgments cited refer to Sales Tax laws but when we have a decision directly on the Central Excise law it is naturally to be preferred to the judgments on Sales Tax laws. Another reason is that this judgment, insofar as it relates to one particular article viz. operating tables, has been approved by the Supreme Court -1985 (19) E.L.T. 3 (S.C.). The Supreme Court has stated in para 6 of the report that the Court entirely agrees with the reasons recorded in the Bombay High Court judgment and the view taken by the High Court. 8. The goods involved in the dispute that arose before the Bombay High Court and which was carried to the Supreme Court were operation tables having a comprehensive ranges of positions for patients to be operated upon, with head and foot controls. They had hydraulic as well as gear mechanism with indicator dials. One model of the operation table was also equipped with accessories such as lateral supports on kidney elevator, shoulder support, knee crutches, etc. They were specially designed to suit the requirements for various types of operations. In coming to the conclusion that these oper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roach the question of classification of the goods in dispute in the present appeal bearing in mind the principles laid down in the above judgment. 12. As we have already noted, the appellants have furnished write-ups and photographs of the items in dispute. A complete set of these documents were furnished to the Collector for his comments, if any, thereon which the Collector has done by his letter dated 8-12-1987 to the Departmental Representative who has furnished a copy of the letter to the Bench. The Collector has observed that the disputed item such as steel cabinets, steel tables, steel racks are meant for storing equipment, gauges and parts and components, dies or for working (welding tables, inspection tables). The Collector has also observed that some of these items are welded to the shop floor. He has also noted that the items are manufactured as per specific designs and requirements for use in the appellants works. In some cases, provision has been made for fixing by bolts in view of the load and height factor. All these features, in the Collector s opinion, would not disqualify the items from being considered as steel furniture. In the write-ups furnished by the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ins, Stainless Steel Pump Stands and Box with door fell within the scope of Item 40, CET. The Departmental authorities held that these articles fell under the said item. The Court held that the Trolleys in question were not of the type used in households or doctors clinics but used only in factories for the purpose of shifting goods from one place to another. As regards storage Bins and Stainless Steel Pump Stands and Box with door, the Court held that merely because the articles resembled cupboards, etc., they would not be articles of furniture. 15. In the result, the impugned order is set aside and the appeal is allowed with consequential relief to the appellants. Appeal No. E/1276/82-D 16. this appeal involves the classification of goods like tool holders, cabinets, racks, work benches, etc., as in Appeal No. E/744/82-D. The classification was decided against the appellants by the Assistant collector who found that these items were steel furniture falling under Item No. 40, CET. This order was upheld in appeal by the Appellate Collector of Central Excise by the impugned order dated 21-6-1982. 17. For the same considerations set out in our order regarding Appeal No. E/74 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bay High Court in Elpro International Ltd. [1985 Vol. (19) E.L.T. 3] (vii) Order No. 587/87-D, dated 27-7-1987 of this Tribunal in the case of New Chelur Manufacturers. (viii) Order No. 384/87-D, dated 12.5.1987 of this Tribunal in the case of M/s. Nima Ltd. 22. Excepting in the case of M/s. Elpro International Ltd., and Material Handling Engineering Company and other cases before the Courts arose with reference to the interpretation of the word furniture as under the several Sales Tax Laws. It may be noted that the entry for consideration in the Bombay Sales Tax Act mentioned the word furniture in entries 40A and 44H while the entry in the Madras General Sales Tax Act mentioned furniture of all types as entry 44. It was noted by the Courts that the word furniture has not been defined in the respective Acts. It is for that reason that all the Courts had to fall back upon the dictionary meaning and trade understanding to construe what would be furniture. 23. In the Chandan Metal Products case it was held that all articles of convenience or decoration used for purposes of furnishing a place of business or an office would be articles of furniture. It was held that a shelvi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court with reference to that finding. 24. When there is a decision of the Supreme Court on a particular issue it would be binding on all subordinate authorities. Therefore, the ratio of the Bombay High Court decision with reference to the operating table would have to be followed whenever the nature of any goods is to be considered for deciding whether the same would be an article of furniture. As earlier mentioned, the Bombay High Court took note of the fact that though termed a table, the operation table had specialised functions to perform and was suitably fabricated to facilitate the performance of such functions and has special attachments for use by the surgeon using the table. It further took note of the fact that the cost was much beyond what a similar article of normal household furniture would cost and by look also the operation table could not be called a mere table or a price of furniture. Hence if with reference to any of the goods in issue before us these criteria are satisfied, we are bound to hold that the said item would not be an article of furniture. On the other hand if, as held by the Bombay High Court with reference to X-ray screen, an article though ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntioned to be so fabricated as to be capable of bearing very heavy weight. The tables are again manufactured out of heavy gauge steel and reinforced suitably as they have to withstand heavy pressures such as hammering, chipping, filling, sawing, etc., that will take place on the materials placed on the table for being worked on. It is again mentioned that a large number of these articles have provisions for being grouted to the floor by means of bolts since they will have to be kept rigid and without movement as may result due to the work performed on them. It is also mentioned that many of them, by reason of the heavy gauge material used, are abnormally heavy. It is also mentioned that the work benches are so fabricated as to facilitate particular pieces of machinery being kept thereon for being worked. It is mentioned that otherwise the workers will have to perform the work on the machine in a bending position, resulting in loss of productivity and that is why the work benches of necessary height are fabricated to enable the respective machinery to be kept on the bench for being worked. In such instances they would be really in the nature of being part of the machine itself thoug ..... X X X X Extracts X X X X X X X X Extracts X X X X
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