1984 (4) TMI 304 - AT - Central Excise

Goods classified under different Tariff Item, Collector's decision overturned, appeal allowed, cross-objection dismissed

The Tribunal held that the goods were classifiable under Tariff Item No. 29A(3) and not T.I. 68, overturning the Collector's decision. The appeal was ... - Issues:Classification of goods under Tariff Item No. 29-A(3) or T.I. No. 68 of Central Excise Tariff, time-barred refund claims.Analysis:1. The case involved the classification of goods manufactured by the respondents under Tariff Item No. 29-A(3) or T.I. No. 68 of the Central Excise Tariff, along with the issue of whether the refund claims made by the respondents were time-barred.2. The respondents, engaged in manufacturing goods since 1962, initially had their goods classified under T.I. No. 29A(3) by the Assistant Collector of Central Excise. Subsequently, based on a court judgment, they sought a refund claiming that the goods should be classified under T.I. No. 68. The Assistant Collector rejected the refund claims, stating that the goods were correctly classified under T.I. 29A(3). On revision, the Collector of Central Excise upheld the classification under T.I. 68 but limited the refund to a specific period, citing limitation under Excise Rules.3. The Central Board of Excise and Customs directed the Collector to file an appeal before the Tribunal, as the judgments relied upon by the Collector had not been accepted by the Government of India, and a Special Leave Petition was filed in the Supreme Court. The present appeals aimed to set aside the Collector's order, with the respondents also filing a cross-objection seeking a full refund for the entire period.4. During the appeal, arguments were made regarding the classification of the goods as parts of Refrigerating and Air-conditioning Machinery under T.I. No. 29A(3). The senior advocate for the appellants contended that the plain meaning of the sub-item should not be controlled by certain phrases used in other sub-items. He referenced judgments from the Gujarat High Court and Tribunal decisions that disagreed with the Allahabad High Court's interpretation.5. The advocate for the respondents acknowledged that if the Tribunal followed the Gujarat High Court's interpretation, the respondents would have no case. They reserved the right to challenge the decision in the Supreme Court for a definitive ruling on the conflicting judgments.6. The Gujarat High Court's decision in a similar case disagreed with the Allahabad High Court's interpretation, emphasizing that certain phrases should not be injected into the classification entry. The Tribunal followed the Gujarat High Court's judgment over the Allahabad High Court's decision.7. Ultimately, the Tribunal held that the goods were classifiable under T.I. 29A(3) and not T.I. 68, overturning the Collector's decision. The cross-objection filed by the respondents was deemed infructuous, and the appeal was allowed while dismissing the cross-objection.