2005 (10) TMI 408 - AT - Customs

Summary

Issues:
1. Appeal against denial of DEPB benefit for export of Slitting Steel Cutters.
2. Classification of the disputed item "Bottom Anvil" as a cutter.

Analysis:
1. The appeal was filed by the Revenue against the Order-in-Appeal passed by the Commissioner (Appeals) regarding the denial of DEPB benefit for the export of Slitting Steel Cutters. The adjudicating authority determined that the goods in question were indeed cutters used for slitting purposes, based on the examination of the product catalogue provided by the respondent. The Commissioner (Appeals) upheld this decision after reviewing the product literature. The Revenue contended that the disputed item, "Bottom Anvil," was not a cutter but rather a shaft or spindle for winding material, thus not eligible for DEPB benefit. However, the respondent's product literature demonstrated that they manufactured bottom knives for slitting purposes, indicating that the disputed item was indeed a cutter used for enhancing slitting operations. The Tribunal, after considering the lower authorities' findings and the product literature, concluded that the goods exported were slitting steel cutters, including the item in question. Consequently, the appeal against the denial of DEPB benefit was dismissed.

2. The second issue revolved around the classification of the disputed item, "Bottom Anvil," as a cutter. The Revenue argued that the item was not a cutter but a spool or support without cutting edges. However, the respondent's product literature clarified that bottom knives were used for slitting purposes, indicating that the disputed item was part of the cutting mechanism. The Tribunal, after examining the product literature and considering the nature of the goods exported, determined that the disputed item was indeed a cutter used for slitting operations. Therefore, based on the evidence presented and the lower authorities' findings, the Tribunal found no merit in the Revenue's appeal and dismissed it, affirming the classification of the disputed item as a cutter and upholding the denial of DEPB benefit for the export of Slitting Steel Cutters.