Classification under Tariff sub-heading 8481.80 defeated the differential duty demand for the disputed period.

Differential duty could not be sustained where the control valves had already been classified in the assessee's favour under sub-heading 8481.80 of the Central Excise Tariff Act, 1985. The earlier appellate determination on classification had accepted the assessee's claim, so the foundation for demanding differential duty for September 1994 to April 1995 no longer survived. On that basis, the Revenue's appeal failed.

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Issues: Whether the Revenue could sustain the demand for differential duty for the period September 1994 to April 1995 after the classification of the goods under sub-heading 8481.80 had already been upheld in the assessee's favour.

Analysis: The earlier appellate order had accepted the assessee's claim that the control valves in dispute were classifiable under sub-heading 8481.80 of the Schedule to the Central Excise Tariff Act, 1985. In view of that determination, the basis for raising the differential duty demand for the disputed period did not survive.

Conclusion: The demand for differential duty could not be sustained and the Revenue's appeal failed.

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