2004 (12) TMI 514 - AT - Central Excise

Summary

Issues: Classification of goods under different sub-headings, waiver of pre-deposit, stay of recovery

In this judgment by the Appellate Tribunal CESTAT, CHENNAI, the issue at hand was the classification of goods, specifically "Drain Hose with Cap," under different sub-headings by the assessee and the Department. The demand of duty amounting to Rs. 12,500/- was based on the Department's classification under sub-heading No. 3917.00, while the assessee classified it under sub-heading No. 8479.90. The Revenue argued that the item, made entirely of plastic material, should be classified as 'Tubes, Pipes and Hoses' under sub-heading No. 3917.00, citing relevant case laws such as Vikoflex Engineers Pvt. Ltd. and J.R. Engineering Indus. (P) Ltd.

Upon reviewing the tariff entries and submissions from both sides, the Tribunal found that the appellants had a prima facie case. They noted that the case laws cited by the Revenue were distinguishable as they involved items not entirely made of plastic material and not classified under Heading 84.79. Consequently, the Tribunal granted the waiver of pre-deposit and stay of recovery as requested by the appellants, indicating a favorable decision in their favor. The judgment highlights the importance of understanding the composition of goods and the relevant tariff headings for accurate classification, emphasizing the need for a strong legal argument supported by relevant precedents.