2016 (10) TMI 35 - AT - Central Excise

Tribunal Upheld Classification of Link Cartridge Metallic Belt under Chapter Heading 73.20

The Tribunal upheld the classification of Link Cartridge Metallic Belt under Chapter Heading 73.20, rejecting the Revenue's appeal advocating Chapter ... Classification - Link Cartridge Metallic Belt 0 whether to be classified under Chapter Heading 73.20 as per Commissioner (A) or under 93.06 as per Revenue - Held that:- the impugned goods are used as packing material and not as part of the ammunition, and the Section Note and HSN Notes under Chapter 73, and when the subject product viz., Link Cartridge Metallic Belt is still being classified under Chapter Heading 73.02 as per the information in Addl. Commissioner LTU's letter dated 18.5.2016. Revenue s stand does not seem to be justified. Therefore, we do not feel convinced to interfere with the impugned order which decides the classification as Chapter 73.20. - Decided against the Revenue Issues:Classification of Link Cartridge Metallic Belt under Central Excise Tariff - Chapter heading 73.20 or 93.06.Analysis:The Revenue appealed against the Order-in-Appeal classifying Link Cartridge Metallic Belt under Chapter heading 73.20. The matter, pending since 2002, was decided based on available facts, submissions, and lower authorities' findings. The Revenue contested the classification, citing Circular No.653/44/2002-CX, advocating Chapter Heading 93.06. The respondent argued that the Circular was legally incorrect, emphasizing the item's use as packing material, not part of ammunition. They presented letters supporting this claim, including one from the Ministry of Defence. They also highlighted Section Note and HSN Notes under Chapter 73, indicating the classification of springs under this heading.The Tribunal considered all submissions and facts. The Revenue confirmed the continued classification of the item under Chapter Heading 73.20. Given the item's use as packing material and the supporting evidence, the Tribunal found Revenue's stance unjustified. Referring to the information in the Additional Commissioner's letter, which confirmed the ongoing classification under Chapter Heading 73.20, the Tribunal upheld the lower order's classification decision. Consequently, the impugned order was sustained, and the appeal by the Revenue was dismissed.