2004 (2) TMI 538 - AT - Central Excise

Summary

Issues:
Classification of goods known as "Steel Scales" under sub-heading 9017.10 or 9017.90 of the CETA.

Analysis:
The appeals involved a common issue regarding the correct classification of "Steel Scales" manufactured by the appellants. The duty confirmed in two separate appeals for different periods was contested by the appellants. The appellants claimed the classification under sub-heading 9017.10 as drawing and mathematical instruments, while the department argued for classification under sub-heading 9017.90 for goods other than those falling under 9017.10.

The learned Counsel for the appellants argued that the steel scales contained features of drawing and mathematical instruments, such as engraved inches and centimeters on the front side, conversion tables, and calculations on the back, making them fall under sub-heading 9017.10 with a nil rate of duty. On the contrary, the learned SDR contended that the scales were primarily for drawing lines and measuring distances, thus classifiable under sub-heading 9017.90 with a 16% duty rate.

Upon hearing both sides, the Tribunal examined the nature of the steel scales. It was observed that the scales included features typical of drawing and mathematical instruments, such as measurement engravings and mathematical calculations, indicating their purpose beyond simple length measurement. The Tribunal concluded that the scales were indeed mathematical instruments used for preparing drawings and solving mathematical problems, falling under sub-heading 9017.10 of the CETA.

The Tribunal also considered the HSN notes on Heading 90.17, which the learned SDR referenced to support the classification under sub-heading 9017.90. However, the presence of detailed tables and calculations on the scales contradicted this classification. The scales were deemed to be drawing and mathematical instruments, not falling under the category specified by the HSN notes for sub-heading 9017.90. Therefore, the impugned orders classifying the scales under sub-heading 9017.90 were set aside, and the appellants were granted relief from duty demands for the disputed periods in both appeals.

In conclusion, the Tribunal ruled in favor of the appellants, determining that the "Steel Scales" manufactured by them qualified as drawing and mathematical instruments under sub-heading 9017.10 of the CETA. The classification under this sub-heading entitled the appellants to a nil rate of duty, leading to the acceptance of both appeals with any consequential relief permitted by law.