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TMI Blog2001 (2) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal, held the product to be classified under Chapter 9403.00 which was followed up and demands confirmed subsequently. (b) the brochure describes the product to consist of a usually fixed block and a number of mobile blocks that can be moved on a rail track to and fro, each block is provided with 'aisle lock' to arrest accidental movement and all blocks can be closed & locked by means of a floor lock. The mobility is obtained by 'crank system'. The system uses the available space, efficiently for storage. The storage items can be as designed and racks are usually designed to carry maximum of 7.5 MT weight when made of heavy duty racking but light/medium duty racking can also be made. They can be installed on basement or top floor of any Building, depending on the strength of flooring. (c) Mobile storage system are used for storage of spares, Hardware & other stores, besides office Records, such as ledgers, stationary flat files. Box files and lateral filling systems in Industries, Banks, Insurance Companies, Hospitals, Hotels & other offices as it appears from the Brochure in the paper book; while hearing orders the Customers are required also to give details of end ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... how they cannot be called as furniture. However, I find from Note 2 in Chapter notes under Chapter 94 that the articles referred to in Heading Nos. 94.01 to 94.03 are to be classified in these headings if they are designed for placing on the floor or ground. The said notes further states that the following items viz. cupboards, book cases, other shelved furniture and unit furniture are also to be classified in the above mentioned headings even if they are designed to be hung, to be fixed to the wall or to stand one on the other. In other words, it is not necessary that the cupboards, book cases, other shelved furniture and unit furniture are to be mobile in order to be classified under these headings. The criteria of mobility is therefore not relevant. This mobile storage systems are used for storage of spaces, hardware and other stores beside office records, such as ledgers, stationery, flap files, box files and lateral filing systems in industries, offices etc.. Their use is like any other items of furniture like the racks, cupboards, etc. They therefore aptly fall in the category of furniture. As per section Note 1 to Section XV articles of Chapter 94 are not covered in this sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecial Bench CEGAT, in the case of Tata Engineering and Locomotive Company Ltd. v. Collector of Central Excise, Patna. With reference to these arguments, it is necessary to mention here that the appellant manufactures mobile storage racks. This consists of mobile blocks placed on rails fixed to the earth. One block is permanent and the remaining blocks are mobile. The advantage in having the mobile racks is that if saves place inasmuch as the aisle space between 2 blocks can be obtained by moving the blocks. In other words, it amounts to shifting the aisle place so as to get the space between the desired blocks. Excepting for one block, the other blocks are mobile. As earlier said, since these blocks (except one) move on rails fixed to the earth and the system as a whole is fixed to the ground through the rails, the appellant contends that the mobile storage rack cannot be called as 'movable' but they are fixed to the ground. Therefore, the appellant contends that they do not fall within the nomenclature 'furniture' and in that context, they have assailed the order of the Assistant Collector as referred to above and have also drawn attention to the meaning given to the term 'furnit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, they fall under chapter 94. The appellant has further gone on to refer to the HSN notes at page 1020 and have argued that as per the notes therein, heading 7508 includes, large scale shelving for assembly and permanent installation in shops, workshops, storehouses, etc. stalls and racks. Therefore, the appellant claims that in view of these notes the mobile racks will fall under chapter 73. According to me, the large scale shelving for stalls and racks etc.; refered to above, would refer to those which are permanent and fixed This is clear from the further notes available at page 1021 ibid where it says that the said heading i.e. 75.08 does not cover 'movable shelved furniture' falling under heading 94.03. Even otherwise, a reading of the tariff heading 73.08 will give a clear picture that it does not cover the goods of the type manufactured by the appellant. The appellant has also placed reliance on a judgment of the Bombay High-Court in the case of Materials Handling Engineering Co. v. MG Wakins, Superintendent of Central Excise and Others reported in 1980 E.L.T. 231 (Bom) and have argued that the Hon'ble Bombay High Court have ruled therein that the word 'furniture' has got ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid notes and accordingly furniture means, any movable articles which have the essential characteristic that they are constructed for placing on the floor or ground and which are used, mainly with a utaliterian purpose, to equip private dwellings, hotels, hospitals, offices, etc. It is further amplified in the said note that for the purpose of this chapter i.e., chapter 94 articles are considered to be "movable" furniture even if they are designed for bolting etc., to the floor. Therefore even though the mobile storage system is said to move on the rails which are fixed to the earth, in view of the meaning of the term furniture as given above, these goods would aptly fall under the term furniture and therefore merit classification under heading 9403.00. I must make it clear that 1 have not arrived at the above conclusion solely on the meaning of the term furniture given in the HSN notes but based on the chapter note 2 to chapter 94 as well. I, therefore allow this appeal filed by the Asst. Collector and order that the mobile storage system and components thereof be classified under chapter SH 9403.00 of Central Excise Tariff Act, 1985. As a consequence, the duty differential is als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, medicaments, etc. would be classified as per intended use under 9403 and under 7308 when tailored for end use at workshops etc.
(e) We would therefore hold the classification under 9403 as arrived at only after determining the customers end use, as ascertained from the "STO - RACKS LIMITED" 'USER DATA (TO BE FURBISHED BY CLIENTS)' obtained by appellants from customers as given at page 47 of the paper book, for the end uses as mentioned under chapter note to chapter 94; if the design and end use from the same is conforming to the end use of heading 7308 i.e. 'shops, workshops, store houses, etc.' then the entity would be classified under 7308.
(f) Since the classification would be falling under 7308 and also under 9403, the demand will be required to be reworked out and for that purpose, the confirmation of the demand made is set aside and the matter remanded back for redetermination of the demands on the seggregation of the clearances under 7308 and 9403 to be arrived at by the original authority. The appellants to provide the authority all documents as may be required by him for this purpose.
4. The two appeals disposed off in the above terms. X X X X Extracts X X X X X X X X Extracts X X X X
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