2005 (1) TMI 583 - AT - Central Excise

Activated Dimethicone IP - Classification of - Classification of goods - Finality - Strictures against Revenue

Summary

Issues: Disputed classification of Activated Dimethicone IP under tariff headings 3003.20 and 3823.00.

In this case, the appellant-company claimed the classification of Activated Dimethicone IP under tariff heading 3003.20, while the Central Excise Officers classified it under heading 3823.00. The Commissioner initially accepted the appellant's classification, but the Revenue challenged this decision before the Tribunal. The Tribunal rejected the appeal and upheld the classification under sub-heading 3003.20, a decision that was affirmed by the Supreme Court in a previous case. However, in the current case, the Commissioner disregarded the previous orders and classified the product under sub-heading 3910.00, citing the use of the product as a deforming agent in pharmaceutical industries. The appellate authority's decision was criticized for not following the legal hierarchy and re-deciding a previously settled issue. The Tribunal emphasized that once an issue is decided by higher authorities, it cannot be re-examined based on overlooked facts. The Tribunal found no merit in the Commissioner's decision, set aside the impugned order, and allowed the appeal in favor of the appellant-company, also disposing of the Stay Petition.