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2017 (11) TMI 712 - AT - Central ExciseClassification of goods - Fibre Glass Pressure Vessels - components for industrial water treatment plants - The department has contended that as per Chapter Note 1 (c) of Chapter 84, the product Components for Industrial Water Treatment Plants are excluded from Chapter No.84 and taking into consideration the manufacturing process, raw materials used and end use the products are correctly classifiable under CSH No.7014.00 as Article of Glass Fibres coated/covered with Plastics attracting duty @ 18% advalorem. Held that: - the respondent is admittedly manufacturing glass fibre vessel wherein the ingredients of glass fibre is predominant, i.e. in case of FRP vessel content of fibre glass is of 57% and in respect of the product composite vessel is 63% and in respect of the composite vessel, the fibre glass present is 38% but remaining 62% is of all other materials used. Therefore in all the three products, the predominent part of material used is fibre glass. According to the predominate principle, the products should be classified under chapter 70.14 - there is no dispute that the product in question in the present case is FRP glass fibre vessel wherein the predominent material is glass fibre. Therefore, it will be preferably classifiable under Chapter 70.14. Since the product in question is classifiable under Chapter 70, even though it is a part used with the goods of Chapter 84. It will not cover under Chapter 84, if it is made out of glass. This chapter note 1 (c) absolutely clear that the product FRP glass fibre vessel correctly classifiable under Chapter 70.14 and will not cover under Chapter 84. The Tribunal while remanding the matter in the first round given a categorical finding that the classification has to be decided on the basis of predominance of the material used in the product. Therefore, it was not open for the Commissioner to go into any other aspects except the principles of predominance of material contained in the finished goods. For this reason also the impugned order is not sustainable. The goods glass fibre vessels are correctly classifiable under 70.14 - appeal allowed - decided in favor of Revenue.
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