TaxTMI 
TaxTMI 
2009 (2) TMI 25
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.... sought:- "Whether the steel plates proposed to be manufactured by the applicant is classifiable under chapter sub heading 8906 90 00 or under chapter sub-heading 7326 90 80 of the Central Excise Tariff". 2. The application states that steel sheets would be cut and cold formed to produce steel plates through a computer controlled process. Each steel part will be uniquely marked with a part number. All the completed parts will be collected and stored until a complete section block, in the form of parts, is ready. These would be supplied to the customer in pre-determined batches, taking into account, the building sequence of the receiving shipyard. 3. The applicant contends that the Note in chapter 89 of the First Schedule to the Central Excise Tariff Act, 1985 which covers "Ships, boats and floating structure" states "A hull, an unfinished or incomplete vessel, assembled, unassembled or disassembled or a complete vessel unassembled or disassembled, is to be classified in heading number 89.06 if it does not have the essential character of a vessel of a particular kind". Rule 2 (a) of the Rules for Interpretation of the tariff clarifies that any reference in a heading to an a....
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....ated that the ruling sought, relates to the classification of these ship building kits. This kit, according to the applicant is basically a complete hull, presented in an unassembled condition. Such a collection of sequentially numbered parts, constituting a complete hull can not be classified as "parts of hull" referred to in 73089030. It should rightly be classified under 89069000, which as per Note of Chapter 89, covers an unassembled and disassembled hull. This is the appropriate classification as this tariff item specifically covers hull and Rule 3(a) of the Interpretation Rules states that the more specific description should prevail over the heading providing a more general description. The applicant also relies on judgments in the case of CC Vs Hindustan Motors Ltd., 2003(156) ELT 155 (Tribunal-Delhi) and BAYERISCHL MOTOREN WERKE AKTIENGESELLSCHAFT [2006 (193) ELT 138 (AAR)]. 6. The Departmental Representative relies on case laws* and instruction in CBEC Manual 2001 (Chapter 3 part 11 para 2.1) to state that recourse to General Interpretative Rules cannot be had when classification is determinable on the basis of chapter and section notes and descriptions of tariff....
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....d lifeboats other than rowing boats 8906 10 00 : Warships 8906 90 00 : Other" "Articles of iron and steel" are covered under chapter 73 of the tariff. The tariff item 7308 90 30 contained therein is reproduced below: "7308 90 30 : Hatchway rails and bulkheads for ships or boats and parts of hull" 11. The General Rules for Interpretation of the tariff contained in the First Schedule to the Central Excise Tariff Act, 1985 are given in the Schedule itself. The first rule of interpretation states: "1. The titles of sections, chapters and sub-chapters are provided for ease of reference only; for legal purpose, classification shall be determined according to the terms of the headings and any relative section or chapter notes and provided such headings or notes do not otherwise require, according to the following provisions." 12. It is clear from the application that what would be cleared are different parts of a hull in batches comprising of parts of a complete block, and that supply of all the parts required for manufacture of a complete hull would be spread over a period of time. The goods cleared in a particular batch would answer to....
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....e heading, does not arise. The above line of interpretation is succinctly brought out in para 11 of the Supreme Court's Judgement in case of CCE Nagpur Vs Simplex Mills Co. Ltd. 2005(181) ELT 345 (S.C.) which is extracted below: " The rules for the interpretation of the Schedule to the Central Excise Tariff Act, 1985 have been framed pursuant to the powers under Section 2 of that Act. According to Rule 1 titles of Sections and Chapters in the Schedule are provided for ease of reference only. But for legal purposes, classification "shall be determined according to the terms of the headings and any relevant section or Chapter Notes". If neither the heading nor the notes suffice to clarify the scope of a heading, then it must be construed according to the other following provisions contained in the Rules. Rule 1 gives primacy to the Section and Chapter Notes along with terms of the headings. They should be first applied. If no clear picture emerges then only can one resort to the subsequent rules" 13. The structure of the Central Excise Tariff is based on the internationally accepted nomenclature in Harmonized System of Nomenclature (HSN). Supreme Court, in the case of CCE, S....