1998 (5) TMI 188 - AT - Central Excise

CEGAT Rules in Favor of Appellants on Product Classification Appeal

The Appellate Tribunal CEGAT, CALCUTTA ruled in favor of the appellants in the case concerning the classification of the product 'M.S. Flat-16 x 5 mm/19 x ... Classification Issues:Classification of product as 'M.S. Flat-16 x 5 mm/19 x 5 mm' under Item 26A(iii) or 26AA(ia) based on the definition of flats and bars in the Tariff.Analysis:The primary issue in this appeal before the Appellate Tribunal CEGAT, CALCUTTA was to determine whether the product 'M.S. Flat-16 x 5 mm/19 x 5 mm' should be classified as a flat under Item 26A(iii) or as a bar under 26AA(ia) based on the description provided in the Tariff. The Tribunal noted that the adjudicating authority had relied on the definition of flats and bars effective from 1st August 1983, while the period in question was from 3-1-1983 to 24-1-1983 when there was no statutory definition available. The appellant argued that classification was previously done in accordance with C.B.E. & C.'s Tariff Advice No. 4/67 from 8-6-1967, which provided guidance on distinguishing flats and bars based on the rolling mill used for production.The appellant's consultant highlighted the Tariff Advice's criteria for differentiating between flats and bars based on thickness and width specifications. The Tribunal was presented with a table converting inches to millimeters to demonstrate the effect of the Tariff Advice on the classification of products. The Tribunal concurred with the consultant's argument that based on the Tariff Advice, the product in question should be classified as a bar and not a flat. Therefore, the Tribunal set aside the impugned order and allowed the appeal in favor of the appellants, providing them with consequential relief.In conclusion, the Tribunal's decision was based on the interpretation of the Tariff Advice from 1967, which guided the classification of products as flats or bars based on specific criteria related to thickness, width, and the type of rolling mill used in production. By applying this guidance, the Tribunal determined that the product 'M.S. Flat-16 x 5 mm/19 x 5 mm' fell under the classification of bars and not flats, leading to the appeal's success for the appellants.