2012 (11) TMI 357

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....ice Tax Appellate Tribunal (for short 'CESTAT'), in E/Appeal No. 2006/2004-NB(B) with E/CO/215/2004-NB (B) [2005 (182) E.L.T. 407 (Tri. - Del.)], whereby the appeal filed by the respondent/Revenue was allowed. 3. By order dated 21-1-2010, this Court admitted the appeal on the following substantial question of law : "Whether the learned Tribunal was right in allowing the appeal filed by the Commissioner, Central Excise, Raipur and considering that the Coil Transfer Car is classifiable under the Heading 86.06 Railway or Tramway Goods Vans and Wagaons not self-propelled instead of under Heading No. 84.55 part of Metal Rolling Mills and Rolls of Central Excise Tariff, 1994-95?" 4. The facts, in brief, are that the appellant is a re....

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....efore the Commissioner (Appeals). The Commissioner by order dated 21-1-2004 (Annexure - A/3) allowed the appeal and set aside the order dated 30-6-1998 by recording the finding that the 'Car' is an auxiliary equipment and is used for shifting of material from one place to another in rolling mill. Therefore, it can be considered for classification under sub-heading No. 8455.00 heading No. 84.55 of the Central Excise Tariff. 7. Thereagainst, the respondent herein preferred an appeal before the CESTAT. The said appeal was allowed by the CESTAT vide impugned order dated 24-12-2004 (Annexure - A/4) and set aside the order dated 21-1-2004 holding that 'Car' falls within the classification under heading No. 86.06. 8. The facts are indi....

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....lding that 'Car' is not used as an integral part of rolling mill and, as such, it does not come within the definition of auxiliary equipments. Accordingly, by the impugned order dated 24-12-2004, the order passed in appeal by the Commissioner (Appeals) was set aside and the order passed by the Assessing Officer, was restored. 13. Chapter 84.55 reads as under : "84.55 8455.00 Metal rolling mills and rolls therefor". 14. Chapter 86.06 reads as under : "86.06 8606.00 Railway or tramway, goods, vans and wagons, not self-propelled." 15. Explanatory notes (second edition 1996) of World Customs Organization states that : "Rolling mills are metal working machines consisting essentially of a system of rollers between which t....

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....ric or electronic) etc." 17. In the same notes, heading 86.06 - Railway or tramway, goods, vans and wagons, not self-propelled, it is stated that this heading covers vehicles for the transport of goods on railway networks (of any gauge). It also covers small vehicles or trucks for the transport of goods by rail, in mines, on building sites, in factories, warehouses, etc. These latter generally differ from true wagons, carriages, etc., in that they are not fitted with springs. 18. Thus, admittedly, the coils are not rolled out on 'Car' by the pressure exerted by the rollers and at the same time the rolling does not modify the structure of the metal or improve its quality. As such 'Car' does not become a part of rolling mills. The....