| Headnote |
Central Excise Tariff Act, 1985 : Excise goods-Classification of-Tests to determine-Discussed Tariff Heading 94.01 and 94.03-Play table, tables, activity desks and chairs-Classification of-Held: Even though 'toys' are meant for exclusive use of children it cannot be placed in the category of 'toys '-HSN heading and explanatory notes thereto shows that 'toys' are miniature reproduction of articles used by adults like furniture, musical instruments-Hence, classifiable as furniture' under Tariff Heading 94.01/94.03. Tariff Heading 95.03-Swings, Slides, Fun Fliers and Rockers-Classification of-Held : Reduced size models of slides, swings, fun fliers and rockers is used in playground and not for general physical exercise-Hence, classifiable as toys- under Tariff Heading 95. 03. Tariff Heading 39.22-Play Pool-Classification of-Held: Play Pool is classifiable as 'Baths' under heading 39.22 since it is of 5 ft. diameter, 2.5 ft. deep with capacity of 1000 to 1500 litres-Also it is fully covered by explanatory notes to HSN heading 39.22. Central Excise Act, 1944-Section 11A(1) provio-Extended period of limitation-Invocation of-Approval of classification lists of certain products filed by assessee and goods cleared without payment of duty-Thereafter, Department invoking extended period of limitation alleging mis-declaration in the classification lists regarding nomenclature of products by assessee-Held : Department duly approved classification lists from time to time, knew all facts, its officers had been visiting assessee 's factory on several occasions and also was not prevented from calling the assessee to produce their product catalogues-Hence, no wilful suppression of facts to invoke extended period of limitation. Appellant - manufacturer of toys classified Activity Desks and Chairs, Fun Fliers, Play Table, Play Pool, Rockers, Slides and Swings as toys under Chapter Heading 95.03 of the Central Excise Tariff Act, 1985 by prefixing and suffixing words 'baby' and 'toys' respectively to each of the items and cleared the same without payment of duty. Respondent - Department approved the list without enquiring about the description of the products in the catalogue. It also visited the factory premises of assessee number of times. Thereafter, respondent issued show cause notice to the appellant demanding duty invoking proviso to section 11A(1) of Central Excise Act, 1944 on the ground that the words 'baby' and 'toy' were prefixed and suffixed to each of the items in the classification list to mislead the Department to believe that the said product were toys whereas the product catalogue described the products as Rockers, Slides, Swings etc. It classified Play Table, Activity Desks and Chairs under Headings 94.01, 94.03; Fun Fliers, Rockers, Slides and Swings under Headings 95.06; and Play Pool under Heading 39.22 and as such chargeable to duty. Tribunal upheld the classification done by the Department with regard to play tables, tables, activity desk and chairs under Headings 94.01 and 94.03. However, it classified swings, slides, fun fliers and rockers under Tariff Heading 95.03 and play pool under heading 39.26. It also held that the Department was not entitled to invoke larger period of limitation. Hence the present appeals. Appellant-assessee contended that 'Activity Desks and Chairs' were specifically designed for amusement of small children which were bought and sold in the market as toys and were exclusively available in toy shops and not in furniture shops and as such classifiable under Tariff Heading 95.03 as toys; and that Note- 1 under Chapter 94 shows that it does not cover the toy furniture. Respondent - Department contended that the mere fact that baby chairs, desks and tables were used predominantly by children to sit on and write would not place that article in the category of toys; that they were smaller versions of tables and chairs used by adults and as such rightly classified as furniture under Headings 94.01 and 94.03; and that swings, slides, fun fliers and rockers are equipments under Headings 95.06 for general exercise, gymnastics and athletics. |
