2002(03)LCX0161

IN THE CEGAT, COURT NO. II, NEW DELHI

S/Shri S.S. Kang, Member (J) and V.K. Agrawal, Member (T)

COMMISSIONER OF CUSTOMS (ACU), NEW DELHI

Versus

RANUTROL LTD.

Final Order Nos. 111-112/2002-B, dated 11-3-2002 in Appeal Nos. C/429 & 422/2001-B

Advocated By :   Shri M.P. Singh, JDR, for the Appellant.

S/Shri Vivek Kohli and Abhishek Jain, Advocates, for the Respondent.

[Order per : V.K. Agrawal, Member (T)]. - In these two appeals, preferred by Revenue, the common issue involved is whether the “shower cabins” imported by M/s. Ranutrol Ltd. are classifiable as ‘pre-fabricated building’ under Heading No. 94.06 of the First Schedule to the Customs Tariff Act as upheld by the Commissioner (Appeals) or under sub-Heading 7615.20 of the Tariff as claimed by the Revenue.

2.1 Shri M.P. Singh, learned DR submitted that Heading 94.06 applies to “Pre-fabricated buildings” which expression means building, which are finished in the factory or put up as elements presented together to be assembled on site. He referred to the Explanatory Notes of HSN below Heading 94.06, according to which “these buildings, which can be designed for a variety of uses, such as housing, work sites accommodation, office, schools, shops, sheds, garages and greenhouses, are generally presented in the form of :

-        Complete building, fully assembled, ready for use;

-        Complete buildings, unassembled;

-        Incomplete buildings, whether or not assembled, having the essential character of pre-fabricated buildings.”

2.2 He, further, submitted that as per Explanatory Notes “presented separately, parts of buildings and equipment, whether or not identifiable as intended for these buildings, are excluded from the heading and are in all cases classified in their own appropriate headings.” He, therefore, contended that the impugned “Shower Cabins” do not satisfy the criterion of pre-fabricated building as explained in the Explanatory Notes; that the impugned goods are to be fitted in the bathroom for enhancing the efficiency of the same and these are not buildings themselves; that as per Explanatory Notes of HSN below Heading 76.15 read with Heading 73.24, Heading 76.15 includes “baths, bidets, hip-baths, foot baths, sinks, wash basins, toilet sets, soap dishes and sponge baskets; douche cans, sanitary pails, urinals, bedpans, chamber pots, water closet pave and flushing cistern whether or not equipped with their mechanisms, spittoons, toilet paper holders.” The learned DR argued that it is thus clear that the impugned goods are classifiable under sub-heading 7615.20 of the Tariff.

3. On the other hand, Shri Vivek Kohli, learned Advocate, submitted that the impugned goods are not sanitary wares as they have nothing to do with sanitation; that it is apparent from the Explanatory Notes of HSN below Headings 76.15 and 73.24 that sanitary ware items covered are either outlets or collecting points which “Shower cabins” imported by the respondents are not; that the impugned goods are nothing but pre-fabricated structures falling under Heading 94.06 of the C.T.A. He also mentioned that even the Customs Department had clarified to them on enquiry that the impugned goods are classifiable under Heading 76.15; that Director General of Foreign Trade had also classified the impugned product under the said Heading. The learned Advocate, further, mentioned that shower cabins imported by them, may alternatively be classified under Heading 76.10 of the Customs Tariff Act as “Aluminum structures.” In reply, the learned DR mentioned that the Explanatory Notes below Heading 73.24 of HSN is inclusive one and not exhaustive.

4. We have considered the submissions of both the sides. The rival Headings reads as under :-

Note 4 to Chapter 94 defines pre-fabricated buildings as under :

“For the purpose of Heading 94.06, the expression “pre-fabricated buildings” means buildings which are finished in the factory or put up as elements, presented together, to be assembled on site, such as housing or work site accommodation, offices, schools, shops, sheds, garages or suitable buildings.”

There is nothing on record to suggest that the “shower cabins” in question are pre-fabricated buildings as defined in the said Note. These goods are shower cabins to be fitted in bathroom and to be used for shower. As rightly contended by the learned DR the impugned goods are to be fitted in a building and are not building themselves. The Revenue’s classification is supported by the Explanatory Notes of HSN below Heading 76.15 which provides that the Heading 76.15 covers the same type of articles as are described in the Explanatory Notes to Headings 73.23 and 73.24. According to Explanatory Notes, Heading 73.24 includes baths, bidets, hip baths etc. As Shower Cabins are used for taking shower, these are appropriately classifiable under sub-heading 7615.20 of the Customs Tariff Act. Accordingly, both the appeals filed by Revenue are allowed.

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Equivalent 2002 (142) ELT 377 (Tri. - Del.)

Equivalent 2002 (050) RLT 0763