Full Judgment
Tribunal had observed that "the learned advocate, before us, has fairly stated that the goods manufactured are pliers which is classified under 51A(1)". Accepting this submission, the Tribunal had considered the definition of plier as "a small instrument with two handles and two grasping jaws, usually long and roughened working on a pivet used for holding small objects and cutting, bending and shaping wire." This would more be true in respect of small hand crimping tool, sample of which is shown to me in the hearing. However, the goods now in question, though they perform the same function, cannot be classified under Heading 8205 in view of their size and weight and other additional feature, and the Tribunal's observation regarding their nature would obviously not apply. I have the benefit of seeing the sample of the goods.
In the result, I set aside the Assistant Collector's classification of the goods and direct the classification under Heading 84.63." 2. The Revenue is in appeal against the above finding. The respondents have not appeared for hearing today despite receipt of notice by them.
(Acknowledgement card sent on 21-9-1999 has been received back by the Registry). Accordingly, we are deciding the matter after hearing the learned D.R.3. Learned D.R. submitted that, apart from the order-in-appeal being at variance with the classification sought by die manufacturer or approved by the Assistant Collector, it is also not in conformity with the scheme of Central Excise classification. Heading 8205 is for hand tools, 84.63 is for machine tools and 84.67 is for tools working in the hand. From this itself it would be clear that Heading 84.63 is not attracted, as the item in question is not a machine tool. He referred us in this context to Notes to Section XVI of the Explanatory Notes to HSN which clarifies with reference to the scope of Heading 84.67 as under: - "This heading covers tools which incorporate a compressed air motor (or compressed air operated portion), an internal combustion motor or any other non-electric motor (e.g., small hydraulic turbines); the compressed air, and in the case of the internal combustion motor the ignition batteries are generally separate. In pneumatic tools the action of the compressed air is sometimes supplemented by hydraulic connections.
The heading covers such tools only if for working in the hand. The expression "tools for working in the hand" means tools designed to be held in the hand during use, and also heavier tools (such as earth rammers) which are portable, that is, which can be lifted and moved by hand by the user, in particular while work is in progress, and which are also designed to be controlled and directed by hand during operation. To obviate the fatigue of taking their full weight during operation they may be used with auxiliary supporting devices (e.g., tripods, jacklegs, and overhead lifting tackle).
The heading excludes tools which, because their weight, size, etc., obviously cannot be used in the hand as described above. It also excludes tools (whether or not portable) fitted with a base late or other device for fixing to the wall, bench, floor, etc. and those with provision for running on rails (e.g., machines for slotting or drilling railways sleepers.
The heading further excludes combinations consisting of a tool holder with one or more tools, and a separate spark-ignition internal combustion piston engine with a flexible shaft; the tool holder is classified in Heading 84.66, the spark-ignition internal combustion piston engine with its flexible shaft in Heading 84.07, and the tools in their own appropriate headings." The D.R. also referred to the order-in-original and stated that the said order was passed in the light of Explanatory Notes in the HSN.4. It appears to be clear that the item in question is not a machine tool. Therefore, its classification under Heading 84.63 cannot be correct. The item is used with hydraulic power, though it is a hand-held tool. Thus, the description under Heading 84.67 is quite appropriate for the goods. The Explanatory Notes in the HSN make it clear that Heading 84.67 is for hand-held tools. In these facts, we feel that the classification of the item under Heading 84.67, as originally approved by the jurisdictional Assistant Collector, was correct. The appeal of the Revenue is, therefore, allowed and the impugned order-in-appeal is set aside.