2003 (9) TMI 390 - AT - Central Excise

Summary

Issues:
1. Disputed classification of 27 products under different headings.
2. Claim for alternate classification under different headings.
3. Consideration of new points for classification at the appellate stage.
4. Application of case laws in support of arguments.
5. Final decision on classification and remand orders for the disputed items.

Issue 1: Disputed classification of 27 products under different headings
The appeal involved a dispute over the classification of 27 products listed in exhibit A. The appellants claimed classification under Heading 81.01, while the department classified them under Heading 82.09. A subsequent classification under sub-heading No. 8485.90 was done after a remand from the Commissioner (Appeals). The appellants sought relief against the remand order and claimed classification under 81.01 for some items, with an alternate claim under Heading 81.13 as cermets and articles thereof. The rates of duty under Heading 81.13 and 8485.90 were similar for most of the disputed period.

Issue 2: Claim for alternate classification under different headings
Regarding items at Serial Nos. 10 to 27, the impugned order upheld the classification under Heading 82.09, while the appellants claimed classification under Heading 84.66. An alternate claim under Heading 81.13 was made but limited due to lack of a filed affidavit. Both sides presented arguments based on technical literature and drawings, debating whether the items were parts of machines under Heading 84.66 or tools under Heading 82.09. The Tribunal decided to set aside the impugned order for these items and remand the case for a fresh decision based on detailed examination at the adjudicating authority level.

Issue 3: Consideration of new points for classification at the appellate stage
The learned JDR argued that new points cannot be raised for fresh classification at the appellate stage, citing the decision in Warner Hindustan Ltd. v. Collector of Central Excise. The appellants referenced case laws like Voltas Ltd. v. Collector of Customs and Goodyear India Ltd. to support their argument.

Issue 4: Application of case laws in support of arguments
After hearing both sides and reviewing case records and cited case laws, the Tribunal upheld the classification for Item No. 9 as the appeal was not pressed. For Items 1 to 8, the Tribunal noted that the appellants participated in the de novo proceedings and had the opportunity to challenge the classification under sub-heading 8485.90, which they did not do. The Tribunal declined to interfere with the impugned order of remand for these items.

Issue 5: Final decision on classification and remand orders for the disputed items
The Tribunal agreed with the appellants that the case of Rapicut did not consider the claim for classification under Heading 84.66 for items at Serial Nos. 10 to 27. Detailed examination and physical inspection were deemed necessary to determine the correct classification of these items, leading to a decision to set aside the impugned order and remand the case back to the adjudicating authority for a fresh decision, allowing both parties to present evidence for a proper classification process. The appeal was partly allowed based on these terms.