2000 (4) TMI 721 - AT - Central Excise

Tribunal reclassifies item as Domestic Electrical Appliance under TI 33-C, emphasizing legal principles

The Tribunal allowed the appeal, overturning the Collector (Appeals)'s decision and classifying the disputed item as a Domestic Electrical Appliance under ... Revision - Review Issues:Classification of Domestic Electrical Appliances (Grillers) and Electric Stoves under the Central Excise Tariff - Benefit of exemption under Notification No. 33/69-C.E.Detailed Analysis:1. Classification of Domestic Electrical Appliances (Grillers):The appellants filed a classification list for Domestic Electrical Appliances (Grillers) under TI-33/C of the Central Excise Tariff. The Department contended that an item declared as Domestic Electrical Appliances (Electric Stoves) was actually an Electric cooker, not eligible for exemption under Notification No. 33/69. The Assistant Collector classified the item as an Electric cooker under TI 33-C, excluding it from the benefit of the said Notification.2. Appeal Proceedings - Collector of Central Excise:The appellants appealed to the Collector of Central Excise, who held that the product in question was a component of an Electric cooker, not an Electric stove. The Collector classified it under TI 68 as a part of a complete product, modifying the Assistant Collector's order. Subsequently, the Tribunal set aside the Collector's order due to a violation of natural justice principles and remanded the matter for a fresh decision.3. Review Application and Revenue's Appeal:The Revenue appealed against the classification of the product as a component of an Electric cooker, arguing that it should be classified under TI 68. The Collector (Appeals) upheld the Revenue's contention, classifying the disputed item as a component of a Domestic Electrical Appliance under TI 68. The appellants filed an appeal against this decision.4. Tribunal's Findings and Decision:In Appeal No. 2858/92-B, the Tribunal found that the Review Application raised a point of re-classification under TI 68, which was beyond the scope of the Assistant Commissioner's decision. The Tribunal set aside the impugned order, following precedent, and allowed the appeal. In Appeal No. 4257/92-B, the Tribunal held that the disputed item was correctly classifiable under TI 33-C as a Domestic Electrical Appliance, eligible for exemption under Notification No. 33/69. The Tribunal allowed this appeal as well, overturning the Collector (Appeals)'s decision.Overall, the Tribunal's detailed analysis focused on the correct classification of the products under the Central Excise Tariff and the eligibility for exemption under Notification No. 33/69, ensuring adherence to legal principles and precedents in reaching its decisions.