1999 (3) TMI 159 - AT - Central Excise

Tribunal Upholds Electrode Casing Classification; Revenue Appeal Allowed for Correct Classification .90

The Tribunal upheld the classification of the electrode casing under TSH 7308.90 for duty exemption under Notification No. 217/86 before 1-3-1988. Despite ... Classification - Appeal - Limitation Issues Involved:Classification of electrode casing under TSH 7308.90 for duty exemption under Notification No. 217/86; Proper classification of goods under TSH 7308.90 or TSH 7326.90 before and after 1-3-1988; Extension of benefit of Notification No. 217/86.Classification under TSH 7308.90 for Duty Exemption:The case involved the classification of electrode casing under TSH 7308.90 for claiming duty exemption under Notification No. 217/86. The respondents initially classified the casing under TSH 7308.90 in their classification list effective from 9-2-1988. However, a show cause notice was issued by Revenue proposing a different classification both before and after 1-3-1988. The Assistant Collector, relying on a previous order, extended the benefit of the exemption but classified the goods under TSH 7308.90 as claimed by the assessee. The proceedings in the show cause notice were subsequently dropped.Proper Classification of Goods:The Collector (Appeals) set aside the classification under TSH 7308.90, stating that the goods were not prepared for use in the structure of iron and steel but were consumed in the manufacturing process. The Revenue argued that the correct classification before 1-3-1988 should be under TSH 7308.90 as it included 'other articles of steel.' The Tribunal agreed with the Revenue, stating that electrode casing falls under 'other articles of iron and steel,' justifying its classification under TSH 7308.90 before 1-3-1988.Extension of Benefit of Notification No. 217/86:Despite the classification issue being deemed academic, with the benefit of Notification No. 217/86 already extended by the Assistant Collector, the Collector (Appeals) entertained the appeal of the respondents. The Tribunal noted that there was no reason for the Collector (Appeals) to consider the appeal, as the main issue was the extension of the benefit, which had already been addressed in the original order. However, the Tribunal allowed the Revenue's appeal to the limited extent of correcting the classification under TSH 7308.90.In conclusion, the Tribunal upheld the classification of the electrode casing under TSH 7308.90 for duty exemption under Notification No. 217/86 before 1-3-1988. It noted that the classification issue was academic, as the main concern was the extension of the benefit, which had already been resolved. The Tribunal allowed the Revenue's appeal to correct the classification while emphasizing the academic nature of the entire issue.