1998 (10) TMI 505 - AT - Central Excise

Summary

Issues:
1. Classification of printing frames under Chapter Heading 84.42.
2. Application of Notification No. 39/90-C.E. (N.T.) dated 10-10-90.
3. Revenue's attempt to change its stand from printing frames to flat bed screens.

Classification of Printing Frames (Issue 1): The case involved a dispute regarding the classification of printing frames used in the manufacture of man-made fabrics. The lower appellate authority determined that while Flat Bed Screen may be classified under Chapter Heading 59.09, the printing frames converted from Flat Bed Screen should be classified under 84.42. The Revenue contended that the benefit of Notification under Section 11C should not apply to flat bed screens manufactured by the respondents, as they are distinct from printing frames. However, the Tribunal upheld the lower authority's decision, emphasizing that the Revenue cannot alter its position after initially treating the goods as printing frames for the purpose of issuing Notification 11-C.

Application of Notification No. 39/90-C.E. (N.T.) (Issue 2): The Notification issued under Section 11C of the Act exempted printing frames falling under Chapter Heading 84.42, which were captively used during a specified period. The Revenue sought to recover duty from the respondents for the printing frames used during that period, alleging non-declaration of production and failure to file necessary documents. The Assistant Collector initially dropped the show cause notice based on the Notification. The Revenue's subsequent appeal was dismissed by the lower appellate authority, which maintained that the Revenue's attempt to recharacterize the goods as flat bed screens instead of printing frames at the appellate stage was impermissible.

Revenue's Attempt to Change Stand (Issue 3): The Tribunal highlighted that the Revenue's inconsistent stance, shifting from treating the goods as printing frames for Notification purposes to labeling them as flat bed screens in the appeal, was unacceptable. The Tribunal emphasized that the Revenue cannot continuously alter its position and that the goods were initially recognized as printing frames, leading to the issuance of Notification 11-C. Consequently, the Tribunal rejected the Revenue's appeal and affirmed the lower authority's decision, emphasizing the importance of maintaining consistency in the Revenue's approach.

In conclusion, the Tribunal upheld the classification of printing frames under Chapter Heading 84.42, affirmed the applicability of the Notification exempting duty on such frames, and rejected the Revenue's attempt to change its characterization of the goods. The judgment also referenced a previous case establishing the classification of printing frames under Tariff Heading 84.42 for further clarity on the matter.