2004 (8) TMI 577 - AT - Central Excise

Summary

Issues:
Classification of goods - Aluminium foil laminated with plastic on both sides.

Analysis:
The case involved a dispute regarding the classification of goods manufactured by the appellants, which were aluminium foil laminated on both sides with plastic films. The show cause notice alleged that the goods should be classified under specific sub-headings of the Central Excise Tariff Act, leading to a demand for differential duty. The Assistant Commissioner confirmed the demand, classifying the goods under certain sub-headings. The Commissioner (Appeals) upheld the order but directed the submission of a detailed statement for verifying duty liability. The appellants contended that their goods should be classified under a different sub-heading based on previous Tribunal decisions and a Board Circular.

The main issue contested was the classification of the goods, specifically whether the plastic material predominated in the composition. The Assistant Commissioner had classified the goods under a particular sub-heading based on this criterion. The Tribunal noted that the plastic material was predominant in the roll form of the goods, leading to the correct classification under a specific sub-heading. The Tribunal found that the decisions and circular referred to by the revenue were not relevant to the issue at hand, as the predominant material determined the classification.

The Tribunal referred to a Board Circular clarifying the classification of goods similar to those in the present case under a specific heading. The Circular highlighted previous orders by CEGAT and the Supreme Court, ultimately deciding that such goods should be classified under a particular heading. Additionally, the Tribunal cited a previous case where a similar issue was decided in favor of the appellants based on the Board's Circular and relevant judgments. Consequently, the Tribunal concluded that the goods in question, aluminium foil laminated on both sides with plastic, should be correctly classified under a specific heading, along with pouches made from them, setting aside the lower authority's order and allowing the appeal.