2003 (11) TMI 361 - AT - Central Excise

Summary

Issues:
Classification of Grinding Media Steel Balls under Heading 73.26 or Heading 84.82 of the Central Excise Tariff Schedule.

Analysis:
The case involved a dispute regarding the classification of Grinding Media Steel Balls manufactured by the appellants between November 1987 and September 1992. The department sought to classify the goods under Heading 84.82 of the Central Excise Tariff Schedule, while the appellants contended that the goods should be classified under Heading 73.26. The duty demand against the appellants was based on this classification issue.

Upon examination of the records and hearing both sides, the appellants' counsel argued that previous tribunal decisions supported their classification under Heading 73.26. The counsel also pointed out a specific tariff entry for the subject goods under sub-heading 7326.11 for the relevant period from 1-3-1988.

On the other hand, the department's representative referred to Chapter Note 6, which specified that polished steel balls meeting certain diameter criteria should be classified under Heading 84.82. Citing a previous tribunal decision in Pratap Engineering Works case, the department argued that the forged and polished steel balls in question did not fall under Heading 73.26 but should be classified under Heading 84.82.

After careful consideration, the tribunal examined Chapter Note 6 and a test report confirming that the goods were polished steel balls meeting the specified diameter criteria. Following the precedent set in Pratap Engineering Works case, the tribunal ruled that the appellants' polished steel balls should indeed be classified under Heading 84.82 for the relevant period.

Furthermore, the tribunal distinguished previous cases cited by both parties, noting that the steel balls in question were polished, unlike those in the cases referenced. The tribunal rejected the sub-heading 7326.11 suggested by the appellants' counsel as it applied to articles of iron or steel not further worked, whereas the subject goods were polished, indicating further processing.

Ultimately, the tribunal upheld the classification determined by the lower authority, classifying the subject goods under Heading 84.82 of the Central Excise Tariff Schedule and dismissing the appeal brought by the appellants.