Strict tariff classification by plain wording and one-year excise limitation barred a short-levy demand for conductor classification.

PVC insulated copper conductor with a cross-sectional area of 1.516 sq. mm. was held outside Item 33B(1) of the First Schedule because that entry covered only copper wires not exceeding 1.5 sq. mm.; the tariff wording was applied strictly, and rounding based on I.S.I. specifications was rejected for classification. The conductor was therefore classifiable under Item 33B(2). A short-levy demand was also held time-barred because it should have been issued under Rule 10 read with Rule 173J of the Central Excise Rules, which prescribed a one-year limitation period, and the notice was issued after that period expired.

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Issues: (i) Whether the PVC insulated copper conductor, having a cross-sectional area of 1.516 sq. mm., fell within Item 33B(1) of the First Schedule to the Central Excises and Salt Act, 1944, or under Item 33B(2). (ii) Whether the show cause-cum-demand notice for short levy was barred by limitation under Rule 10 read with Rule 173J of the Central Excise Rules, 1944.

Issue (i): Whether the PVC insulated copper conductor, having a cross-sectional area of 1.516 sq. mm., fell within Item 33B(1) of the First Schedule to the Central Excises and Salt Act, 1944, or under Item 33B(2).

Analysis: Item 33B(1) covered copper wires having a sectional area not exceeding 1.5 sq. mm. The measured cross-sectional area of the conductor exceeded that limit. The governing approach was a strict construction of the tariff entry according to the plain meaning of the words used, and the actual cross-sectional area could not be disregarded by resort to rounding based on I.S.I. specifications for classification purposes.

Conclusion: The conductor did not fall under Item 33B(1) and was classifiable under Item 33B(2).

Issue (ii): Whether the show cause-cum-demand notice for short levy was barred by limitation under Rule 10 read with Rule 173J of the Central Excise Rules, 1944.

Analysis: The demand related to assessments for a period ending long before the notice was issued. The demand ought to have been made under Rule 10 read with Rule 173J, which prescribed a limitation period of one year for such demand. As the notice was issued after expiry of that period, the demand was time-barred.

Conclusion: The demand was barred by limitation.

Final Conclusion: The review proceedings were not entertained and the impugned order was left undisturbed, with the classification and limitation findings operating against interference.

Ratio Decidendi: Tariff entries must be construed according to their plain language, and where a demand for short levy is made after the prescribed period under the applicable excise rules, it is barred by limitation.

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