Classification of pattis depends on manufacturing equipment, not form alone, and goods from non-strip mills fall under a different tariff item.

Goods described as "pattis" manufactured in a mill not equipped for strip production were not classifiable as "strips" under Tariff Item 26AA(iii) merely because of their form. Classification turned on the nature of the manufacturing plant and machinery, and an earlier Bench decision had already drawn a distinction between strips and pattis for this purpose. On the record, the unit was not a strip mill and was not equipped to produce strips, so the classification adopted by the lower authorities could not be sustained. The goods were correctly classified under Tariff Item 26AA(ia) in favour of the assessee.

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Issues: Whether the product described as 'pattis' manufactured by a unit not equipped as a strip mill is classifiable as 'strips' under Tariff Item 26AA(iii) of the Central Excise Tariff, or under Tariff Item 26AA(ia).

Analysis: The appeal was governed by an earlier Bench decision holding that where the manufacturer's plant and machinery is not equipped for production of strips, the goods manufactured cannot be classified under Tariff Item 26AA(iii) merely because they resemble strips in form. The material on record showed that the appellants' mill was not a strip mill and was not equipped for production of strips. On that basis, the distinction between strips and pattis was for classification, and the classification adopted by the lower authorities could not stand.

Conclusion: The product 'pattis' was held not classifiable under Tariff Item 26AA(iii) and was correctly classifiable under Tariff Item 26AA(ia), in favour of the assessee.

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