ORDER
V.K. Agrawal, Member (T)
1. The issue involved in this appeal, filed by Revenue, is whether Coil Transfer Car, manufactured by M/s. Bhilai Engineering Corporation, is classifiable under Heading No. 84.55 of the Schedule to the Central Excise Tariff Act, as decided by the Commissioner (Appeals), in the impugned Order, or under Heading No. 86.06 of the Tariff as claimed by Revenue.
2. We heard Shri O.P. Arora, learned SDR, and Shri K.K. Anand, learned Advocate. The Coil Transfer Car is used in Rolling Mill for transporting of coils in the Rolling Mill. The impugned Car moves on rails. The rival Headings reads as under :-
84.55 Metal-rolling mills and rolls therefore 86.06 Railway or tramway goods vans and wagons, not self propelled.
3. It is contended by the learned Advocate that Coil Transfer Car is a material handling apparatus used in the Rolling Mill; that as such it is part of the Rolling Mill and hence is classifiable under Heading No. 84.55; that it is used for transfer of hot rolled coils from the coiler to a short distance of within 500 meters; that the coil transfer car is an auxiliary equipment of metal rolling mills; that the Explanatory Notes of H.S.N. below Heading 84.55 clearly mentions that “in general, the operation of rolling mill requires a larger amount of auxiliary equipment such as guides, roller tables, handling equipment, re-heating furnaces, pickling tanks, strip coilers, sheers and saws, cooling beds, weighing or marking machines, straightening or flattening machines, control apparatus (mechanical, electric or electronic), etc.” The learned Advocate thus emphasized that the impugned goods being an handling equipment which is, as per H.S.N., auxiliary equipment of rolling mills, is classifiable under Heading 84.55. The learned Advocate also relied upon the decision in the case of Larsen & Toubro Ltd. v. CCE, 2001 (136) E.L.T. 562 (T).
4. On the other hand the learned SDR has contended that (rolling mills are metal working machines consisting of essentially of a system of rollers between which the metal is passed; the metal is rolled out or shaped by the pressure exerted by the rollers, and at the same time the rolling modifies the structure of the metal and improve its quality; that admittedly the impugned goods namely coil transfer car is used for transferring the hot rolled coils from coilers i.e. after rolls have been manufactured; that thus it cannot be termed as part of the rolling mill; that further as per Explanatory Notes of H.S.N. Heading 86.06 covers vehicles for the transport of the goods on Railway network and also covers small vehicles or trucks for the transport of goods by rail in mines, at building sites, in factories, warehouses etc.). The learned SDR submitted that as the coil transfer cars moves on rail for transfer of goods in a factory it is squarely covered under Heading No. 86.06 of the Tariff.
5. We have considered the submissions of both the sides. Heading 84.55 applies to metal rolling mills and rolls therefor. The parts are also classified under the same Heading. The Respondents have not brought any technical write-up or drawing/design to show that coil transfer car manufactured by them is integral part of the rolling mill. It has to be shown that the impugned goods is part of the metal rolling mills. It has also not been controverted by them that the impugned goods is used for transportation of the hot rolled coils from the coiler which is subsequent to the manufacture of the coils. On the other hand Heading 86.04 of the Central Excise Tariff covers within its purview railway or tramway goods vans and wagons not self propelled. It is also admitted fact that coil transfer car moves on rails for transportation of goods in factory. In view of this fact it is classifiable appropriately under Heading 8606. In the case of Larsen & Toubro, classification involved was of Torpedo Ladle Cars meant for receiving melt metal from a furnace and pouring the same in the converter or moults. The Tribunal has classified them under Heading 84.54 as the same were specifically mentioned in Heading 84.54 of the Tariff. We, therefore, set aside the impugned Order and allow the appeal filed by Revenue.