2005 (7) TMI 443 - AT - Central Excise

Summary

Issues: Classification of number plate under Heading 8714.00, 8313.00, or 7326.90

In this case, the issue revolves around the correct classification of a plain number plate by the Respondents, who are manufacturers of motor vehicles and parts. The department initially classified the number plate under Heading 8313.00, leading to duty demands. However, the Commissioner (Appeals) reclassified it under Heading 7326.90 after considering the manufacturing process and identity of the product. The Commissioner found that the blank name plates did not bear any letters, numbers, or designs, excluding them from Heading 83.10. Instead, the plates were processed through cutting, painting, and hole punching, which aligned with the characteristics of MS Plates falling under sub-heading 7326.90. The Revenue appealed against this reclassification.

The Revenue raised two primary grounds in their appeal. Firstly, they questioned whether the Commissioner (Appeals) could go beyond the show cause notice in changing the classification to 7326.90. Secondly, they argued that the classification under 8310.00 should have been upheld, disputing the exclusions recognized by the Commissioner.

Upon review, the Appellate Tribunal found no merit in the Revenue's grounds for appeal. They upheld the Commissioner (Appeals) order, stating that Heading 7326.90 appropriately covered the product in question. The Tribunal dismissed the Revenue's appeal, emphasizing that the Commissioner had the authority under Section 35A(3) to make clarifications even if not initially raised by the department.

In conclusion, the Appellate Tribunal rejected the Revenue's appeal, affirming the classification of the plain number plates under Heading 7326.90 based on the manufacturing process, product identity, and established classification principles.