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TMI Blog1988 (10) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... Collector of Central Excise in coming to his conclusion in his order dated 2-1-1984 has given the following findings :- I have gone through the records of the case carefully. For principle of natural justice also, on 29-10-1983, I paid personal visit to M/s. Trigan Metal Sections, and examined the above referred products. Their point No. 1 is not tenable since they are manufacturing above referred parts which are having special design and structure in conjunction with or without nuts and bolts steel furniture can be assembled. A wholesale dealer is not a manufacturer of steel furniture but he gets certain parts from one factory and other parts from the other, wherever he gets benefit in price to make the price competitive at a lower rate for sale special gauge according to his choice is preferred by him. Their argument regarding Ministry s opinion is specially designed products of steel such as counters, cabins, catwalks etc. used by industrial establishments cannot be regarded as total furniture classifiable under T.I. 40. This argument is also not acceptable since the budget of 1969, the Tariff Definition of steel furniture has been revised and it has included parts of steel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at there is considerable force in their arguments and the product cannot be considered to be specially designed parts of steel furniture and as such they merit classification under T.I. 68 only as is done in the case of other manufacturers in other parts of the country. In the result the appeal succeeds, and the order of the Assistant Collector is accordingly set aside. The appellant is entitled to consequential relief." 4. Learned SDR, Shri J.N. Nigam for the appellant-Collector has urged that the impugned order passed by the Collector (Appeals) is a very cryptic order. He does not give any reasons whatsoever for classification of the goods under T.I. 68. He merely states that he has examined the goods and on such examination he straightaway comes to the conclusion that they fall under T.I. 68 without in any way recording any reasons as to how T.I. 40 is eliminated before arriving at Item 68. 4.1 Learned Consultant further states that there is no dispute that the goods are capable of being used as parts of steel furniture. The fact that these are used for other purposes, namely ladders, catwalks or large sized storage racks etc. does not take away from the fact that these pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tant admits that the parts in question no doubt has multiple uses. Steel furniture can also be made but other things like catwalks, ladders, mezzanine floors, pigeon structures can also be made out of it as is apparent from the catalogues and the photographs. He also points out that in fact a table constructed from these sections at page 11 of the catalogue produced by the respondent clearly shows that the holes within the sides of the table top was manufactured out of these parts being used in an industrial establishment for the use of workers. If this could be termed as a furniture in the normal sense as the term furniture is understood to be, there should have been no holes on the sides of the table top so manufactured because this takes away from the beauty of the table top. These holes in fact further indicate that if so desired by the manufacturer some further panels can be fixed to table top to make any other thing so desired by industrial establishment. 5.2 These goods, according to the learned consultant, are in fact normally used for parts of various structures as mentioned above which are used in an industrial establishment. These cannot be, therefore, called parts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carefully considered the pleas advanced on both sides. Tariff Item 40 and Notification 52/70 which have been relied by the department are reproduced below for the sake of appreciation of their arguments :- T.I. 40 - STEEL FURNITURE MADE PARTLY OR WHOLLY OF STEEL, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power, whether in assembled or unassembled condition and parts of such steel furniture (but excluding slotted angles and channels made of steel). Notification No. 52/70. - In exercise of the powers conferred by Rule 8(1) of the Central Excise Rules, 1944, the Central Government hereby exempts parts of steel furniture falling under Item No. 40 other than those which have been given a special shape or design so as to make them clearly identifiable as essential components of steel furniture and from which, in conjunction with other parts, an article of steel furniture can be assembled with or without bolts and nuts, from the whole of the duty of excise leviable thereon." 9. From the perusal of the Notification 52/70 reproduced above and the Tariff Entry it indicates that while all parts of steel furniture are classifiable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturers holding that merely because some portion of the parts of steel furniture are used for catwalks, ladders, mezzanine floors etc. would not make for any distinction in the matter of classifying such parts as parts of steel furniture have not noticed the peculiar wordings of Notification 52/70, dated 1-3-1970 as reproduced above. In fact, this entire judgment of the Tribunal in the case of New Chelur Manufacturers does not at all refer to Notification 52/70. Therefore, we are of the view that the said judgment of the Tribunal though in favour of the Revenue cannot be taken as one interpreting the scope of Notification 52/70. 11. Coming to the wordings of the said notification as mentioned above that only these parts which have been given special shape and design so as to make them identifiable as essential components of steel furniture alone are liable to duty, the appellant-Collector does not point out as to what is the special shape or design which the products under consideration have been given so as to make them as essential components of racks as well as cup-boards. It is apparent from the appellant-Collector s grounds of appeal and the findings of the original autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure in un-assembled condition :- (i) Side Panels, (ii) Back Penels, (iii) Shelves and single type panels, (iv) Partition plates." [Emphasis supplied] From the emphasised portion it is clear that the Board s letter treats these 4 parts as furniture in unassembled condition. In other words, if the clearance of these parts takes place in sets comprising of all the aforesaid parts then these sets are termed in the Board s letter as unassembled steel furniture . The relevant para, therefore, does not say that if these parts are cleared separately without being formed into sets, they are to be treated as parts of steel furniture which have been given special shape and design so as to make them essential components of steel furniture and therefore, outside the purview of Notification 52/70. In fact, the Board s letter dated 17-10-1968 does not interpret and cannot interpret the scope of a subsequent Notification 52/70. 13. In the above analysis it has been assumed that the products made by the appellant are parts of steel furniture because they find use in assembling of steel furniture as well besides other uses. A question arises whether such an assumption is a valid one. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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