1997 (10) TMI 193 - AT - Central Excise

CEGAT grants benefit of Notification No. 223/88 for Chapter 73 castings; Modvat credit allowed. Remand for small scale unit benefit.

The Appellate Tribunal CEGAT, New Delhi partially allowed the appeal, granting the benefit of Notification No. 223/88 for goods classified under Chapter ... Classification - Modvat - Exemption to SSI units Issues:Classification of goods under sub-heading No. 7325.10, eligibility for Notification No. 275/88, benefit of Notification No. 233/88, benefit of Notification No. 175/86, Modvat credit, non-filing of declaration under Rule 57G.Analysis:1. Classification of Goods and Eligibility for Notifications:The appeal challenged the Order-in-Appeal upholding the classification of goods under Chapter 84 or 85 instead of sub-heading No. 7325.10, while rejecting the appellant's claim for Notification No. 275/88. The appellant argued that their manufacturing processes did not go beyond casting, making them eligible for Notification No. 233/88 or duty-free assessment as unmachined casting. Citing precedents, the appellant contended for the benefit of Notification No. 175/86 as a small scale industry. The Departmental Representative argued that the processes transformed the goods into machined castings, citing a Supreme Court judgment. The Tribunal held that the goods, although not mere castings, were eligible for Notification No. 223/88 under Chapter 73, granting Modvat credit despite non-filing of Rule 57G declaration due to change in classification.2. Benefit of Notification No. 175/86:The appellant raised a plea for the benefit under Notification No. 175/86 as a small scale unit, which was not addressed by the Collector (Appeals). The Tribunal remanded the matter to consider this plea, noting the appellant's small scale unit registration mentioned in the classification list.3. Decision and Remand:The Tribunal partially allowed the appeal, granting the benefit of Notification No. 223/88 for goods falling under Chapter 73 as castings, along with considering Modvat credit despite the non-filing of Rule 57G declaration. The case was remanded to the Assistant Collector to assess the plea for the benefit of Notification No. 175/86. The impugned order was set aside, and the appeal was allowed accordingly.This detailed analysis covers the issues of classification, eligibility for various notifications, Modvat credit, and the plea for the benefit of Notification No. 175/86, as addressed in the judgment by the Appellate Tribunal CEGAT, New Delhi.