2003 (12) TMI 416 - AT - Central Excise

Tribunal Upholds Classification of Machinery for Oil Extraction

The Tribunal dismissed the appeal, affirming the Commissioner (Appeals)'s decision. The goods cleared by the respondent were classified under Chapter ... Machinery - Extracting machinery - Appeal to Commissioner (Appeals) - Jurisdiction Issues: Classification of goods cleared by respondent and jurisdiction of Commissioner (Appeals), VadodaraJurisdiction of Commissioner (Appeals):The appeal was filed by the Revenue challenging the order classifying goods under Chapter Heading 84.30. The appellant cannot contest the jurisdiction of the Commissioner (Appeals) as the appeal was initiated by the Revenue itself without raising any objections regarding jurisdiction. The Tribunal's previous order confirmed the Commissioner's jurisdiction under Rule 2(5)(iia)(c) of the Central Excise Rules, despite an office order reallocating jurisdiction to Commissioner (Appeals), Mumbai-III. This reallocation was deemed ineffective due to the absence of a corresponding rule amendment.Classification of Goods:The dispute centered on whether the goods cleared by the respondent, specifically a deck complete with facilities like Module and Helideck (fixed platform), should be classified under Chapter Heading 8430.00 or 8431.00. The Revenue argued that the item was not a fixed platform but parts of a platform falling under Heading 84.30. However, the Tribunal disagreed with this assertion.Detailed Analysis:Upon reviewing the Central Excise Tariff, the Tribunal found no merit in the Revenue's argument. The Commissioner (Appeals) determined that the goods in question constituted complete machinery/equipment intended for extracting mineral oil and natural gas, aligning with Chapter Heading 8430.00. Reference was made to Note 4 of Section XVI of the Central Excise Tariff Act, stating that when a machine comprises components contributing to a specific function under Chapter 84 or 85, it should be classified accordingly. The Tribunal concurred with the Commissioner's classification, emphasizing that the goods fell under Heading 8430.00 due to their nature.In conclusion, the Tribunal dismissed the appeal, affirming the Commissioner (Appeals)'s decision on both issues. The goods cleared by the respondent were deemed to be appropriately classified under Chapter Heading 8430.00, and the Revenue's challenge regarding jurisdiction was rejected.