1998 (5) TMI 191 - AT - Central Excise

CEGAT Upholds Classification of 'Dead Burnt Dolomite' & 'Sintered Dolo' under Tariff Item 2505.40

The Appellate Tribunal CEGAT, CALCUTTA upheld the classification of 'Dead Burnt Dolomite' and 'Sintered Dolo' under Tariff Item: 2505.40 and affirmed the ... Classification Issues: Classification of goods under Central Excise Tariff Act, entitlement to exemption under Notification No. 281/86-C.E.Classification of Goods:The case involved the classification of 'Dead Burnt Dolomite' and 'Sintered Dolo' under the Central Excise Tariff Act, 1985. The Assistant Commissioner classified these goods under Tariff Item: 2505.40, a decision upheld by the Commissioner (Appeals). The Respondents did not challenge this classification. The Tribunal noted that the goods were used in the manufacture of refractory bricks, which were further utilized for repair and maintenance of the furnace in the factory. The Tribunal emphasized that the Notification did not require direct use for maintenance and repair, allowing for exemption based on ultimate use, even through intermediate products. The Tribunal rejected the Revenue's contention, upholding the impugned Order.Entitlement to Exemption:The second issue revolved around whether 'Dead Burnt Dolomite' and 'Sintered Dolo' were entitled to exemption under Notification No. 281/86-C.E. The Commissioner (Appeals) held that since these products were used by the Respondents for repair and maintenance of machinery, specifically in the manufacture of refractory bricks and for fettling purposes in steel furnaces, they qualified for exemption under the Notification. The Tribunal concurred with this interpretation, emphasizing that the goods were ultimately used for repair and maintenance, even if through intermediate products. The Tribunal highlighted the broad language of the Notification, which did not mandate direct use for exemption. Consequently, the Tribunal dismissed the Revenue's appeal, affirming the benefit of exemption for the Respondents.In conclusion, the Appellate Tribunal CEGAT, CALCUTTA addressed the issues of classification under the Central Excise Tariff Act and entitlement to exemption under Notification No. 281/86-C.E. The Tribunal upheld the classification of goods and the entitlement to exemption based on the ultimate use for repair and maintenance, even through intermediate products. The Tribunal rejected the Revenue's contentions, emphasizing the broad scope of the Notification's language.