2004 (12) TMI 421 - AT - Central Excise

Tribunal confirms classification of programmable logic controllers under Heading 8537, rejecting Chapter 90 argument.

SPA COMPUTERS LTD. Versus COMMISSIONER OF CENTRAL EXCISE, BANGALORE

SPA COMPUTERS LTD. Versus COMMISSIONER OF CENTRAL EXCISE, BANGALORE - 2005 (180) E.L.T. 497 (Tri. - Bang.) Issues Involved: Correct classification of programmable logic controllersAnalysis:The issue in this case pertains to the correct classification of programmable logic controllers manufactured by the appellants. The Assistant Commissioner initially classified the item under Chapter sub-heading 8537 and demanded a differential duty. The appellants, however, argued that a previous Order-in-Appeal from 1991 had classified the item under Chapter 90, and since it was not appealed against, it had become final. They contended that no new facts had arisen to warrant a change in classification. The Commissioner (Appeals) rejected this argument, stating that classification can be revised prospectively based on new facts and referred to a Circular issued by the Board regarding the classification of the item.The appellants, represented by Shri S.R. Madhava Murthy, maintained that their programmable logic controller should be classified under Heading 9032. They cited a Board order superseding a previous one and making a clear distinction between programmable logic controllers and programmable process controllers. According to this Circular, programmable logic controllers fall under Heading 8537, while programmable process controllers fall under Heading 9032. The appellants' claim that their product falls under Chapter 90 was deemed unacceptable. The tribunal concluded that the goods were rightly classifiable under Heading 8537, and the Order-in-Appeal was considered legal and proper. The tribunal also emphasized that there was no prohibition on reopening the issue and deciding it based on fresh facts that come to light subsequently. Consequently, the appeal was dismissed.