2002 (10) TMI 513 - AT - Central Excise

Summary

Issues:
1. Change of cause title application for a company taken over by another.
2. Classification of an intermediate product arising during the manufacture process.
3. Levy of Cess under the Textile Committee Act, 1963 based on the classification of the intermediate product.

Issue 1: Change of Cause Title Application
The judgment addresses a miscellaneous application for a change of cause title as the appellant company was taken over by another entity. The High Court order facilitated the takeover, and the appellants sought to update the cause title to reflect the new ownership. The tribunal allowed the application, directing the cause title to be in the name of the new entity, M/s. Carborundum Universal Ltd.

Issue 2: Classification of Intermediate Product
The first set of appeals revolved around demands raised by the department concerning an intermediate product arising during the manufacture of "coated abrasives." The department considered the processed cotton fabrics, resulting from applying glue and amylaceous substances, as a new product falling under a specific chapter sub-heading. The appellants contested this classification, arguing that the processed fabric did not constitute a new marketable product as claimed by the revenue. The tribunal referred to a previous judgment in the appellant's favor, where it was established that the coated fabrics did not emerge during the application process, leading to the demands being quashed and the appeals allowed.

Issue 3: Levy of Cess under the Textile Committee Act
The subsequent appeals challenged the levy of Cess under the Textile Committee Act, 1963, based on the classification of the intermediate product as 'coated fabrics.' The appellants contended that since the tribunal had previously ruled that such fabrics did not arise during manufacturing for classification purposes, the imposition of Cess was unwarranted. The tribunal upheld the appellants' argument, citing the earlier judgment and concluding that no Cess was leviable under the Textile Committee Act, 1963. Consequently, the impugned order was set aside, and all appeals were allowed with any consequential relief as per law.

In summary, the judgment addressed issues related to a change in cause title following a company takeover, the classification of an intermediate product in the manufacturing process, and the levy of Cess under the Textile Committee Act based on that classification. The tribunal's decision in favor of the appellants was influenced by a previous judgment establishing that the intermediate product did not meet the criteria for classification, leading to the appeals being allowed and the Cess levy being deemed inapplicable.