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TMI Blog1996 (8) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... easons, he has held that they are required to pay duty at 10% Adv. without the benefit of the Notification rejecting the claim of classification under Tariff Item 33(1)(b). The Learned Collector has examined the literature of these fans and has come to the conclusion in respect of fans Chiki and Miki and held that they are used primarily as table fans, as they have a regular base for this purpose. He has held that main fan portion is adjustable and there is an arrangement for clamps hidden under the base to make the fans hang from wall or ceiling. But its design and manufacture are entirely different from a regular cabin fan which can never be placed on a table. Therefore, he has held that these fans are primarily designed as table fans but could also be fixed to the ceilings or walls. He further held that they are definitely not designed primarily as cabin fans, and therefore, held that it is more appropriate that they are classified as table fans only. As regards the other two fans namely, Tini and Mini, he has held that they are of small size (Blades of only 9"). He has noticed the description of these fans in the literature and has held that these two fans in question have tubu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gulators therefor. Fifteen per cent ad valorem 2. Electric fans, designed for use in an industrial system as parts indispensable for its operation and have been given for that purpose some special shape or quality which would not be essential for their use for any other purpose, and regulators therefor. Fifteen per cent ad valorem . 3. Electric fans, not otherwise specified, and regulators therefor. Twenty per cent ad valorem The Tariff Item 33(2) refers that the Electric fans designed for use in an industrial system which should have some special shape or quality which would not be essential for their use for any other purpose. The present type of fans, which are in question, do not come within the category of TI 33(ii). TI 33(3) refers to electric fans, not otherwise specified, and regulators thereof. In this case as the Learned Collector (Appeals) has held that these fans are to be treated as table fans in view of its design and use and has also held that merely because these fans could be hung that by itself would not be a cause for taking out the fans out of the category of the table fan. However, as can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribed in the literature of the appellants, `Tini A light and vertically tilted marvel, with only 230 mm (9") blades. Tini can hop on to your office desk, dressing table, stay by your bedside or breeze into your bathroom. `Mini Petite and perfectly balanced with 230 mm (9") aerofoil section moulded blade which is corrosion resistant. Built with a robust motor for efficient air displacement it can work at voltages ranging from 170 to 230. The ideal fan for small shops, puja rooms, bathrooms. It is not clear as to how the Ld. Collector has treated them as `table fans simply in view of the above description in the face of the A.C s observations that they could be hung in the corner of the walls of the cabin, bathroom or a cabin which has not been denied, contradicted or shown to be wrong by the Respondents. The A.C. has also mentioned in his finding that these were normally not used as table fans and they were not known as table fans in the general public and the Ld. Collector has not recorded any finding in this respect; and it is significant that the Respondents have not been able to rebut the contention of the department which was necessary particularly when the Responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose fans were classifiable under Tariff Item 33(1). I hold that such fans could only be classified under 33(3) under the heading electric fans, not otherwise specified, and regulators therefor. 15. I also consider that in view of the above findings, in so far as the exemption Notification No. 46/84 is concerned these would fall only under Serial No. 2(b) and would be chargeable to duty accordingly. I therefore, set aside the impugned orders and remand the matter back to A.C. for redetermination of the duty liability in the light of the above observations and findings. Sd/- (S.K. Bhatnagar) Vice President DIFFERENCE OF OPINION 16. In view of the difference of opinion between Hon ble Member (J) and the Vice President, the matter is submitted to the Hon ble President for reference to a Third Member for following points. Whether fan models `Tini and `Mini were required to be considered as Table fans classifiable under Heading 33(1) and eligible to the benefit of S. No. 1(1)(a) of Notification No. 46/86 as proposed by Hon. Member (J) or they were required to be considered as `Multi-purpose /`All purpose fans classifiable under Tariff Item 33(3) and eligible for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be essential for their use for any other purpose, and regulators therefor. Fifteen per cent ad valorem 3. Electric fans, not otherwise specified, and regulators therefor. Twenty per cent ad valorem 22. Shri J.S. Agarwal, the learned Counsel for the respondents submits that the learned Collector (Appeals) after examining the relevant literature and seeing fans also had held that The way `Tini has been described in the literature, it becomes hardly any doubt that it is primarily designed for being used on tables . He further observed that in literature, there is nothing, either, which would make Mini as cabin fan and that merely because they can also be hung from the wall, they would not cease to be table fans. The ld. Counsel also submitted that the ld. Collector (Appeals) also observed that we must go by the primarily design and literature. As against this, the ld. DR submits that the fans were designed in such a way as could be used anywhere. He submits that there were hidden clamps in the fans which indicated that they could be used anywhere. 23. On reading of the Tariff Entries reproduced above, I find that the first entry is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iameter (blade sweep) not exceeding 40.6 centimetres and regulators therefor- Table fans (a) Five per cent ad valorem and Cabin, carriage, pedestal and air circulator fans (b) regulators therefor Ten per cent ad valorem 2. (3) Electric fans not otherwise specified - Ceiling fans of a diameter (blade sweep) not exceeding 107 (a) centimetres. Seven and a half per cent ad valorem Others (b) Fifteen per cent ad valorem 3. (3) Regulators for electric fans Fifteen per cent ad valorem 26. The ld. Counsel for the respondents herein submitted that though there was no entry for multi-purpose fans against Tariff Item 33(1) or 33(2), yet the fact remains that the fans in question could be used as a table fan and since the table fan is a specified item in the Notification No. 46/84, therefore, it should attract the rate of duty applicable to table fan. The ld. Counsel submitted that while interpreting the Notification, once an item falls under concessional rate of duty then th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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