2007 (2) TMI 437 - AT - Central Excise

Appellate Tribunal Upholds Lock Classification for Lift Doors

The Appellate Tribunal CESTAT, KOLKATA upheld the classification of goods used for locking lift doors as locks under Heading No. 83.01, dismissing the ... Locks for lift door - Classifiable whether as lock or part of lift Issues: Classification of goods under Heading No. 84.31 vs. Heading No. 83.01In this judgment by the Appellate Tribunal CESTAT, KOLKATA, the issue revolved around the classification of goods used for locking lift doors as a safety device. The Appellants claimed classification under Heading No. 84.31, while the Revenue classified them as locks under Heading No. 83.01. The Lower Appellate Authority referred to the HSN explanatory notes under Heading 83.01 to support the classification as locks.Analysis:The ld. Consultant for the appellants argued that the goods in question are specifically used as part of the lift and are essential for its proper functioning. On the contrary, the ld. DR contended that the description under Heading 83.01 is more specific, highlighting that the goods function as locks electrically and have a manual lever for use in power outages.After considering the arguments, explanatory notes, and interpretative rules, the Tribunal concluded that while the goods are indeed used as part of the lift, the description under Heading 83.01 is more appropriate. Heading 83.01 encompasses locks operated by keys, levers, combinations of letters, and electrically operated locks for various purposes, including lift doors. Therefore, the Tribunal upheld the lower authorities' classification under Heading 83.01, dismissing the appeal.This judgment emphasizes the importance of aligning the specific functions and features of goods with the corresponding classification headings under the Harmonized System of Nomenclature (HSN). It highlights the significance of interpreting classification rules and explanatory notes to determine the accurate classification of goods for taxation purposes.