TaxTMI 
TaxTMI 
1994 (6) TMI 87
X X X X Extracts X X X X
X X X X Extracts X X X X
.... from 1-3-1988 to 19-5-1988 on the ground that, in terms of Note 1(a) to Chapter 76 of the CETA, 1985, they are classifiable as aluminium wires under Heading 7605 and not as wire rods, being in coil form. In addition a penalty of Rs. 35 lakhs has been imposed. 2. Shri V. Sridharan, learned Counsel submits that the applicants manufacture wire rods by properzi process i.e. the process of continuous casting and rolling and the product is commercially known and bought and sold as wire rods only. The Finance Bill, 1988 introduced on 1-3-1988 contained provisions seeking to amend the entire Chapter 76 of the CETA so as to align it with HSN. The tariff rate of duty proposed in the Finance Bill for all Items of Chapter 76 was 50% ad valorem +....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d Counsel submits that for the purpose of determining effective rate of duty for wire rods in terms of Notifications 150/86 and 101/88 during the relevant period, Note 1(a) and 1(c) of Chapter 76 are not relevant in the absence of any dispute that the items are wire rods. According to the applicants, classification of the wire rods under Heading 76.05 as aluminium wires for the purpose of tariff is not relevant for the purpose of determining the eligibility to the benefit of Notifications 150/86 and 101/88. Lastly he submits that in any event, Note 1(a) to Chapter 76 would take effect only from 13-5-1988 when the Finance Bill was assented to by the President of India and hence the demand for the period upto 13-5-1988 cannot be sustained. To....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntention is that concessional rate of duty of 18% in terms of Sl. No. 4 of 101/88 is not available. Instead, concessional rate of duty of 20% is attracted in terms of Sl. No. 8 to the notification which covers aluminium wires. Lastly he submits that the change in tariff is effective from 1-3-1988, by virtue of Section 3 of the Provisional Collection of Taxes Act, 1931. He, therefore, prays that the application be rejected and the applicants directed to deposit the entire duty and penalty. 4A. We have heard both sides and carefully considered their submissions. We are of the view that the classification of the product is an issue to be examined only when the appeal itself is taken up for hearing, when the aspect will be considered with....