2004 (1) TMI 523 - AT - Central Excise

Summary

Issues: Classification of Lead Seal under Central Excise Tariff - Applicability of Chapter sub-heading 7806.00 vs. 8309.00

In this judgment by the Appellate Tribunal CESTAT, New Delhi, the Revenue appealed against an order by the Commissioner (Appeals) regarding the classification of Lead Seals under the Central Excise Tariff. The appellants claimed classification under Chapter sub-heading 7806.00, while a show cause notice sought reclassification under sub-heading 8309.00. The adjudicating authority confirmed the latter classification, but the Commissioner (Appeals) set it aside, classifying Lead Seals under 7806.00.

The Revenue contended that Lead Seals fall under Heading 8309.00 of the Central Excise Tariff, supported by HSN Notes indicating that Lead Seals are covered under this sub-heading. Conversely, the respondents argued that Lead Seals are not packing accessories but durable seals used for specific purposes, thus falling under Chapter sub-heading 7806.00.

The Tribunal analyzed the facts, noting that Lead Seals are used to make electric meters temper proof. It observed that Chapter Heading 83.09 covers Stoppers, Caps, Lids, and Seals. Referring to HSN Explanation Notes, which include Seals of all kinds generally made of Lead, the Tribunal cited a Supreme Court case emphasizing resolving classification with reference to HSN nomenclature unless the Central Excise Tariff indicates otherwise.

The Tribunal found similarities between the HSN headings and Central Excise Tariff sub-heading No. 8309.00, where "Seals" made of "Lead" are covered. Relying on the Supreme Court decision, the Tribunal concluded that Lead Seals are specifically covered under Heading 8309, setting aside the impugned orders and allowing the appeals.