2014 (12) TMI 990 - AT - Central Excise

Tribunal classifies Curved Steel Roof Panels for exemption under Central Excise Tariff

The Tribunal ruled in favor of the appellant, holding that the Curved Steel Roof Panels should be classified under Heading No. 7308 of the Central Excise ... Manufacture of Curved Steel Roof Panels - fabrication at site - Exemption under Notification No. 3/2005-C.E. - Classification of goods - Classification under Heading No. 7308 or under Heading No. 7210 - Held that:- Commissioner (Appeals)’s order classifying the goods under Heading No. 7210 is not correct, as Heading No. 7210 covers the primary products - “Flat Rolled Products of Iron or Non-alloy Steel, of a width of 600 mm. or more clad, plates or coated”, while the goods, in question, are Roof Panels, which are specifically covered by Heading No. 7308. Since the goods as mentioned in the very first para of the SCN are classifiable under Heading No. 7308 and since the same have been fabricated at site for use in the construction work at that place, the same would be eligible for exemption under Notification No. 3/2005-C.E. (Sl. No. 64). The impugned order, therefore, is not correct. The same is set aside. - Decided in favour of assesse. Issues:Classification of Curved Steel Roof Panels under Central Excise Tariff - Eligibility for exemption under Notification No. 3/2005-C.E.Analysis:1. Classification of Curved Steel Roof Panels: The appellant, engaged in manufacturing Curved Steel Roof Panels, was issued a show cause notice for non-payment of central excise duty on the manufactured goods. The Addl. Commissioner initially dropped the proceedings, citing exemption under Notification No. 3/2005-C.E. However, the Commissioner (Appeals) classified the goods under Heading No. 7210 instead of 7308, leading to denial of exemption. The Tribunal disagreed with the Commissioner (Appeals), stating that the goods in question are Roof Panels falling under Heading No. 7308, not primary materials under Heading No. 7210. Consequently, the Tribunal held that the goods are eligible for exemption under Notification No. 3/2005-C.E. as they were fabricated at the site for use in construction work, overturning the impugned order.2. Eligibility for Exemption under Notification No. 3/2005-C.E.: The primary contention revolved around whether the Curved Steel Roof Panels should be classified under Heading No. 7210 or 7308 of the Central Excise Tariff for the purpose of availing exemption under Notification No. 3/2005-C.E. The appellant argued that the goods, being specifically covered under sub-heading 7308 90 90, should be eligible for the exemption as they were fabricated at the site for installation in a specific factory. On the other hand, the Departmental Representative contended that the goods were rightly classified under Heading No. 7210 and were not eligible for the exemption. The Tribunal disagreed with the Department's classification, emphasizing that the goods fell under Heading No. 7308, making them eligible for the exemption under the notification.3. Final Disposition: Despite the matter initially being listed for hearing only the stay application, the Tribunal decided to address the appeal itself due to the critical issue of goods classification. After considering submissions from both parties and examining the records, the Tribunal found in favor of the appellant, setting aside the impugned order of the Commissioner (Appeals) and allowing the appeal along with the stay application. The judgment clarified the correct classification of the Curved Steel Roof Panels under Heading No. 7308 and upheld their eligibility for exemption under Notification No. 3/2005-C.E.