2004 (5) TMI 381 - AT - Central Excise

Summary

Issues: Classification of domestic flour mill without electric motor & domestic flour mill with electric motor (Ghar Ghanti) under Central Excise Tariff Act, 1985; Applicability of Board's Classification Circular No. 82/82/94-CX; Consideration of Supreme Court's decision on classification under 8509.

The judgment by the Appellate Tribunal CESTAT, Mumbai dealt with the classification of a domestic flour mill without an electric motor and a domestic flour mill with an electric motor, known as Ghar Ghanti, under the Central Excise Tariff Act, 1985. The Tribunal noted that the issue of classification had been settled by the Supreme Court in the appellant's own case, confirming the classification under 8509. Despite the absence of the appellants during the hearing, the Tribunal proceeded to consider the material on record for final disposal of the appeal.

The appellants sought the benefit of Board's Classification Circular No. 82/82/94-CX, issued on 5-12-1994, which stipulated the classification of the entity under 84.37. However, the Tribunal observed that the Supreme Court's decision upholding the classification under 85.09 was subsequent to the Board's Circular, rendering it inapplicable. The Tribunal found no fault in the decision of the Commissioner (Appeals) to not be bound by the Board's Circulars, citing Section 37B of the Central Excise Act, 1944. Consequently, the Tribunal upheld the order of classification based on the Supreme Court's decision and dismissed the appeal.

In conclusion, the Tribunal ordered in accordance with the classification under 8509 as per the Supreme Court's decision, emphasizing the precedence of judicial decisions over Board's Circulars in matters of classification under the Central Excise Tariff Act, 1985.