2006 (11) TMI 396 - AT - Central Excise

Tribunal rules tie pins not eligible for duty exemption under notification 4/97.

The Tribunal allowed the revenue's appeal, determining that the tie pins were not eligible for duty exemption under notification 4/97. The tie pins were ... Jewellery - Article of jewellery Issues: Classification of goods for duty exemption under notification 4/97In this case, the main issue revolves around the classification of goods for duty exemption under notification 4/97. The appellant, the revenue, challenges the classification of tie pins made of silver and gold by the respondent, M/s. Dinesh and Co., under Chapter Headings 7101.70 and 7101.90, respectively. The appellant argues that tie pins should be classified as articles of jewellery under Heading 7101.40, making them ineligible for the duty exemption. On the other hand, the respondent contends that the tie pins should be considered articles of gold/silver and not as tie pins, thus qualifying for the exemption.Analysis:The Commissioner (Appeals) upheld the respondent's classification of the tie pins as articles of silver/gold under Chapter Headings 7101.70 and 7101.90, respectively, allowing them to claim a nil rate of duty under notification 4/97. However, the revenue, represented by the ld. D.R., argued that tie pins fall under Heading 7101.40 as articles of jewellery, making them ineligible for the duty exemption. The revenue's position was based on proviso 7(a) of Chapter Heading 71 under Section XIV, which classifies pins or service pins made of silver and gold as articles of jewellery. The revenue contended that tie pins do not qualify as articles of personal adornment and, therefore, do not meet the definition of ornaments under notification 4/97.In response, the respondent's advocate argued that the tie pins, though described as such, should be considered articles of gold/silver as they can be used on any clothing, not just ties. The advocate even presented a sample of the tie pins to support this argument. However, upon examination of the sample, the Tribunal found that the tie pins were indeed in the nature of tie pins, primarily intended for use as such and not as general articles of silver/gold. Consequently, the Tribunal ruled that the tie pins did not qualify for the duty exemption under notification 4/97.Therefore, the Tribunal allowed the revenue's appeal, setting aside the decision of the Commissioner (Appeals) and concluding that the tie pins were not eligible for the duty exemption as they were correctly classified as tie pins and not as general articles of silver/gold.