2000 (9) TMI 159 - AT - Central Excise

Tribunal permits price difference for standard vs. non-standard electric motors, emphasizing mechanical and electrical distinctions.

The Tribunal allowed the appeal in the case concerning the classification of standard and non-standard electric motors. It emphasized the distinction ... Rectification of mistake Issues: Application for correction of error in the order of the bench regarding classification of standard and non-standard electric motors, Tribunal's power to correct errors, distinction between review and correction, consideration of evidence by the Tribunal, validity of charging different prices for standard and non-standard motors to the same buyer.Analysis:1. The application raised concerns about the Tribunal not considering the material evidence showing the differences between standard and non-standard electric motors manufactured by the applicant. The contention was that these differences justified charging different prices to buyers. The departmental representative argued against the application, stating that accepting it would amount to impermissible review of the order (paragraphs 1-2).2. The Tribunal asserted its power to correct errors on the face of the record, emphasizing the distinction between correction and review. It proceeded to analyze the merits of the application, focusing on whether the standard and non-standard motors constituted different classes of products. The Tribunal found that the claim lacked factual data to support it and highlighted distinctions between the two types of motors based on mechanical and electrical features (paragraphs 3-4).3. Evidence presented by the applicant regarding the manufacturing of non-standard motors based on dealer orders was not adequately considered by the Tribunal, which primarily relied on legal considerations. The Tribunal discussed the concept that significant variations in a commodity could justify different pricing for different models, emphasizing the importance of additional or improved features warranting higher prices (paragraphs 5-6).4. Legal precedents were cited to support the notion that the same buyer could be charged different prices for the same goods, especially when there are substantial differences in the characteristics of the products. The Tribunal ultimately allowed the appeal, permitting the appellant to charge two different prices for standard and non-standard motors to the same buyer, setting aside the previous order (paragraphs 7-8).