1992 (2) TMI 202 - AT - Central Excise

Tribunal rules on paint classification, emphasizes packaging and end-use factors over intended users.

GOODLASS NEROLAC PAINTS LTD. Versus COLLECTOR OF CENTRAL EXCISE

The Tribunal upheld the decision of the lower authorities, ruling that Ready Mixed Paints should be classified under Chapter 3208.90 and not under 3213 as ... Classification Issues: Classification of Ready Mixed Paints under different headings of Chapter 32.Analysis:1. The appeal challenged the Order-in-Appeal by the Collector of Central Excise, Madras, regarding the classification of Ready Mixed Paints by the appellants under different headings of Chapter 32.2. The appellants argued that paints in small containers should be classified under sub-heading 3213 for signboard painters, while authorities classified them under sub-heading 3208.90.3. The appellants contended that small packings are used by signboard painters, supported by affidavits, and should be classified under 3213. The appellants referenced BTN explanatory notes and common parlance understanding for classification.4. The Assistant Collector and Collector (Appeals) rejected the appellants' arguments, emphasizing that end-use is not relevant for classification, citing the case of Dunlop India Ltd. & Madras Rubber Factory Ltd. v. Union of India, 1983 (13) E.L.T. 1566 (S.C.).5. The Assistant Collector and Collector (Appeals) found that the paints should be classified under 3208.90, not as signboard painters' colors under 3213, due to the form of packing and end-use considerations.6. The Tribunal upheld the lower authorities' decisions, stating that end-use does not determine classification, and the product should be classified under 3208.90, regardless of the size of containers or intended users.7. The Tribunal rejected the appeal, concurring with the findings of the lower authorities that the Ready Mixed Paints should be classified under Chapter 3208.90, not 3213.