2001 (12) TMI 441 - AT - Central Excise

Industrial Vacuum Cleaners Reclassified Under Customs Tariff

The Tribunal set aside the Order-in-Appeal reclassifying industrial vacuum cleaners under chapter heading 85.09, confirming their classification under ... Classification Issues: Classification of industrial vacuum cleaner under chapter heading 85.09 or 84.79Analysis:1. Issue of Classification: The appeals arose from an Order-in-Appeal confirming differential duty and reclassifying industrial vacuum cleaners under chapter heading 85.09 instead of 84.79. The appellants argued that the item was designed for heavy-duty industrial use, supported by invoices and manuals showing sales to industrial factories. The Tribunal's previous remand order favored classification under 84.79 for industrial use, as distinct from domestic appliances under 85.09. The appellants cited HSN notes and technical details to assert the industrial nature of the vacuum cleaner.2. Evaluation of Evidence: The Tribunal examined invoices and manuals, noting the item's use in factories and weight exceeding 20 kgs, indicating non-domestic utility. Referring to HSN notes and the Supreme Court judgment in Woodcraft Products Ltd., the Tribunal found industrial vacuum cleaners fell under miscellaneous machinery in Sl. No. 29 of Section XVI under 84.79, aligning with the appellants' claim. Revenue's classification under 85.09 for domestic use was deemed unjustified due to lack of evidence supporting domestic utility.3. Interpretation of Chapter Notes: Chapter note (3) of Chapter 85 specified machines commonly used for domestic purposes under 85.09, including vacuum cleaners not exceeding 20 kgs. The Tribunal emphasized that the item, primarily for industrial use, did not fit this criterion. The item's classification under 84.79 was deemed appropriate based on commercial understanding and HSN explanatory notes, as supported by the appellants' evidence.4. Decision and Relief: The Tribunal set aside the impugned order, allowing the appeals and granting consequential relief as per law. It concluded that the industrial vacuum cleaner was correctly classified under 84.79, in line with commercial usage and HSN notes, rejecting Revenue's classification under 85.09 for domestic appliances. The judgment emphasized the importance of evidence, commercial understanding, and legal interpretations in determining the appropriate classification for goods.This detailed analysis of the judgment highlights the key issues, arguments, evidence evaluation, legal interpretations, and the final decision regarding the classification of the industrial vacuum cleaner under the relevant chapter headings.