1997(09)LCX0142

 IN THE CEGAT, COURT NO. II, NEW DELHI

S/Shri Lajja Ram, Member (T) and S.S. Kang, Member (J)

COLLECTOR OF CUSTOMS, BANGALORE

Versus

KNIC KNAC AGENCIES

Final Order No. C/1965/97-B2, dated 16-9-1997 in Appeal No. C/2854/91-B2

Advocated By : Shri S.N. Ojha, JDR, for the Appellants.

None, for the Respondent.

[Order per : Lajja Ram, Member (T)]. - The Revenue being aggrieved with the Order-in-Appeal dated 2-8-1991, passed by the Collector of Customs (Appeals), Bangalore, had filed the present appeal in which the matter relates to the classification, under the Customs Tariff, of the Steam Irons. The Importers M/s. Knic Knac Agencies, Bangalore, sought classification of the above goods under sub-heading 8451.30 of the first schedule to the Customs Tariff Act, 1975 (hereinafter referred to as the `Tariff’), with the benefit of exemption Notification No. 16/85-Cus., dated 1-2-1985. The Assistant Collector of Customs, Bangalore, on examination found the goods to be smoothing steam iron classifiable under Heading No. 85.16 of the Tariff. On appeal, the Collector of Customs (Appeals), Bangalore, observed that the irons imported by the appellants derived the heat from the steam which in turn was produced by electricity and they did not employ any heating elements directly in the iron boxes. Their source of heat was the steam. He held the goods to be classifiable under sub-heading No. 8451.30 with the benefit of exemption Notification No. 16/85-Cus., dated 1-2-1985. The Revenue had filed the present appeal contending that as per the Harmonised System of Nomenclature (HSN) and the HSN Explanatory Notes [at page 1359 under Heading No. 85.06], on which the Customs Tariff (first Schedule) was based, the electric steam smoothing irons falling under Chapter Heading No. 85.16 also included electric steam smoothing irons, whether they incorporated a water container or were designed to be connected to a steam pipe. That heading included smoothing irons whether for domestic use or for tailors, dress makers etc. On the other hand, it had been pleaded that Heading No. 8451.30 covered machines used in textile industry and garment industry, while the goods in question were small appliance weighing only 1.8 kg each.

2. The respondents have filed written submissions and have prayed that the matter be disposed of on the basis of their written submissions. In their written submissions, the appellants have submitted that the presses imported by them were covered by the Tariff Heading No. 8451.30 of the Tariff as “Ironing machines and presses (including fusing presses).” As the presses imported by them were the presses for shirts, trousers and jackets, they were eligible for the benefit of Notification No. 16/85-Cus., dated 1-2-1985. According to them their goods were not electric smoothing irons for the purposes of sub-heading No. 8516.40 of the Tariff. They had further submitted that the weight of the goods could not be the determining factor for classification of the goods between sub-heading No. 8451.30 and sub-heading No. 8516.40.

3. Shri S.N. Ojha, JDR, appearing for the appellants/Revenue, referred to the HSN Explanatory Notes and the product literature. He submitted that the steam irons imported were not for industrial use but were general purpose items and were correctly classifiable under sub-heading No. 8516.40 of the Tariff. He reiterated the grounds of appeal.

4. We have carefully considered the matter. In the Bill of Entry dated 13-3-1991 and the invoice, the goods had been referred to as the presses for shirts, trousers and jackets. On the other hand, in the literature, however, the goods had been described as electric steam iron for all applications, equipped with cork handle, thermostatic temperature control, separate steam switch on the side, easy to use, complete with table cord 230V, 800W weight approximately 1.8 kg. The appellants had claimed assessment under sub-heading No. 8451.30 of the Tariff as ironing machines and presses (including fusing presses), read with Notification No. 16/85-Cus., dated 1-2-1985, while the Assistant Collector of Customs, Bangalore, had classified the same under sub-heading No. 8516.40 of the Tariff as electric smoothing irons. Under Notification No. 16/85-Cus., dated 1-2-1985 the goods specified in the Table annexed to that notification and falling within Chapter 84 of the Tariff enjoyed concessional rate of duty. At serial No. 42 of the Table, presses for shirts, trousers and jackets were included. The goods classifiable under Chapter Heading No. 85 were not covered by the exemption under Notification No. 16/85-Cus. The electric smoothing irons were covered by Chapter Heading No. 85, and Heading No. 85.16, among others, covered electric smoothing irons.

5. The goods imported had been declared in the Bill of Entry as presses for shirts, trousers and jackets. In the catalogue, the equipment had been referred to as `Steam Irons’. They had been described as electric steam iron for all applications equipped with cork-handle, thermostatic temperature control, separate steam switch on the side - easy to use complete with table cord 230V, 800W - weight approximately 1.8 kg.

6. Chapter 84 covers the mechanical appliances which were not more specifically covered by Chapter 85. The mechanical appliances specifically covered by Chapter 85 were, in other words, not to be classifiable under Chapter 84. Thus, Chapter 85 will have precedence over Chapter 84. In general, Chapter 84 covers machinery and mechanical apparatus, and Chapter 85 covers electrical goods; however, machinery and apparatus of a kind covered by Chapter 84 remained in that Chapter even if electric. Electrically heated presses incorporating electrical heating elements remained classifiable under Chapter 84. Heading No. 84.51 had a reference to the field of industry in which they are used. The expression used in Heading No. 84.51 is the machinery for ironing. The emphasis is on the expression `Machinery’, `Ironing Machines’. To fall in Heading No. 84.51 the apparatus must have mechanical features and must be clearly intended for treating textiles. The Heading covers a wide variety of machines including those which are used for the ironing of textile yarns, fabrics or made up textile articles. To fall in this Heading the apparatus must have mechanical features and must be clearly intended for treating textiles. Ironing machines and steam presses for pressing garments including fusing presses were included in sub-heading No. 8451.30; however, smoothing or ironing machines of the calendar type whether or not for domestic use were classifiable under Heading No. 84.20 which covered calendaring or other rolling machines other than for metals or glass.

7. Electric smoothing irons covered smoothing irons of all kind whether for domestic use or for tailors, dress makers etc. including cordless irons. The electric steam smoothing irons whether they incorporated a water container or were designed to be connected to a steam pipe were also covered in the expression `Electric Smoothing Irons’. Smoothing refers to the surface, crease, to press flat. According to Webster’s Ninth New Collegiate Dictionary, Private Library Edition, (page 639), Ironing is the action or process of smoothing or pressing with or as if with a heated iron. Iron is a household device usually with a flat metal base that is heated to smooth, finish or press (as cloth) - to smooth or press cloth or clothing with a heated iron.

8. The above discussion provides that the ironing machines and presses including fusing presses classifiable under sub-heading No. 8451.30 are those machines which are used by the textile industry. They are basically machines used for ironing of fabrics and made up textile articles. The goods imported were electric steam iron for all applications. They were equipped with cork handle for ease of use. They were more an iron than an ironing machine or machinery for ironing. They were more appropriately classifiable under sub-heading No. 85.16 as electric smoothing irons.

9. Notification No. 16/85-Cus., dated 1-2-1985 provided concessional rate of customs duty to certain specified goods falling within Chapter 84 of the Customs Tariff when imported for use in garment and or hosiery industry. Against serial No. 42 of the Table annexed to that notification “presses for shirts, trousers and jackets” were covered for the concessional rate of duty. As the goods in question were classifiable under Chapter 85, and as the goods classifiable under Chapter 85 were not covered by the scheme of exemption under Notification No. 16/85-Cus., dated 1-2-1985, we consider that the benefit of Notification No. 16/85-Cus. was not available to the goods in question.

10. The respondents had produced a copy of registration-cum-membership certificate dated 2-8-1994 from the Apparel Export Promotion Council in support of their contention that they were engaged in the manufacture of garments. We find that this certificate is dated 2-8-1994 and the application for registration had been made on 30-5-1994. The present imports were effected in the year 1991, much before the said certification was applied for/obtained from the Apparel Export Promotion Council.

11. In view of the above discussion, we do not agree with the view taken by the learned Collector of Customs (Appeals), Bangalore. As a result, the appeal filed by the Revenue is allowed. Ordered accordingly.

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Equivalent 1998 (99) ELT 339 (Tribunal)

Equivalent 1997 (023) RLT 0025