1998 (12) TMI 276 - AT - Central Excise

Tribunal Upholds Goods Classification, Limits Demands, Denies Legal Reference

The Tribunal upheld the lower authority's classification of goods under Tariff Heading No. 85.04, limited the demands to a 6-month period under Section ... Reference to High Court Issues: Classification of goods under Tariff Headings, Applicability of Section 11A of CESA, 1944 for past period of six months, Reference to High Court or Supreme Court for legal questions.Classification of Goods under Tariff Headings:The case involved a dispute over the classification of goods described as 'High Voltage Test Transformers, Current Transformers, Capacitor Voltage Transformers, and Balancing Transformers.' The lower authority classified the goods under Tariff Heading No. 85.04, while the assessee sought classification under Tariff Heading No. 85.43. After considering technical literature, explanatory notes, and a Supreme Court judgment, the Tribunal upheld the lower authority's classification decision.Applicability of Section 11A of CESA, 1944 for Past Period of Six Months:The Tribunal, while upholding the classification decision, restricted the demands to a period of 6 months based on a Supreme Court judgment. The party filed a reference application questioning whether a demand could be made under Section 11A of the Central Excise and Salt Act, 1944 for the past period of six months, even if the classification list had been approved by the Department. The Tribunal held that demands for six months were recoverable under the proviso to Section 11A, following the law laid down by the Supreme Court.Reference to High Court or Supreme Court for Legal Questions:The party sought a reference of legal questions to the High Court or Supreme Court, arguing that the aspect of the applicability of the six-month period of changed classification under Section 11A was pending consideration before a Larger Bench of the Supreme Court. The party contended that this was a question of law, distinct from the classification issue. However, the Tribunal rejected the application, stating that the issue of re-classification and the applicability of Section 11A had already been settled by the Supreme Court and thus did not warrant a reference.In conclusion, the Tribunal upheld the lower authority's classification of the goods under a specific Tariff Heading, restricted the demands to a 6-month period based on legal provisions, and rejected the party's request for a reference to the High Court or Supreme Court, as the legal issues had already been settled by previous judgments.