2006 (9) TMI 312 - AT - Central Excise

Summary

Issues: Classification of Insulated Electric Wires and Cables under Notification No. 5/98 for Fly Ash Handling System.

In this case, the main issue revolves around the classification of Insulated Electric Wires and Cables under Chapter 85.44 for the purpose of availing exemption under Notification No. 5/98 dated 9-6-1998 as amended, specifically for their use as parts of a Fly Ash Handling System. The appellant had filed classification declarations for their products and claimed exemption under the said Notification. The Commissioner (Appeals) had granted the benefit, leading to the Revenue filing an appeal against this decision.

The Tribunal analyzed the classification based on the Harmonized System of Nomenclature (HSN) and determined that even if the cables were not cut to size, they would still be classified as cables under Chapter 85.44. It was noted that the cables in question were general-purpose cables and could not be considered as parts or components of the Fly Ash Handling System eligible for exemption under the Notification. The wording of the Notification specified exemptions for goods listed in List B, which included the Fly Ash Handling system itself, but not its parts. The Tribunal concluded that the cables, being general-purpose and not specifically tailored for the Fly Ash Handling System, did not qualify as parts eligible for exemption under the Notification.

Ultimately, the Tribunal allowed the appeal of the Revenue, classifying the goods as cables under CHN 8544 without the benefit of the Notification. The judgment was pronounced in court on 5-9-2006 by Member (T) S.S. Sekhon.