Classification of forged products under tariff headings upheld for assessee; exemption notification applied and demand and penalty fell away.

Forged products manufactured by the assessee were examined for classification under Heading 7326.90 or Heading 8483.00, and the Tribunal followed its earlier decision in the assessee's own case. It rejected the Revenue's classification view as unsustainable and accepted the assessee's claimed classification. On that basis, the exemption consequence under Notification No. 223/88-C.E. dated 23-6-1988 was available, and the demand and penalty did not survive.

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Issues: Whether the forged products manufactured by the appellants were classifiable under Heading 7326.90 or under Heading 8483.00, and whether the impugned demand and penalty could survive.

Analysis: The Tribunal followed its earlier decision in the appellants' own case and accepted the classification claimed by the appellants. It found the Revenue's view on classification unsustainable and, on that basis, held that the exemption consequence flowing from Notification No. 223/88-C.E. dated 23-6-1988 could not be denied on the footing adopted in the impugned order.

Conclusion: The goods were held to be classifiable as claimed by the appellants, and the demand and penalty were set aside in favour of the assessee.

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