2005 (10) TMI 469 - AT - Central Excise

Summary

Issues:
Classification of "Flanges and Nuts" under Heading 8412.90 or 73.18 of the Central Excise Tariff.

Analysis:
The appeal filed by Revenue concerns the classification of "Flanges and Nuts" designed for specific use as per drawings. The assessee claimed the goods fall under Heading 8412.90, while Revenue argued for classification under Heading 73.18 for parts of general use. The CCE (A) and lower authority supported the assessee's classification. However, Revenue based its argument on Note 2(a) of Section XV and Note 1(g) of Section XVI of the Tariff regarding parts of general use. The Tribunal noted that no grounds were presented to challenge the specific use and design of the goods. The Apex Court's ruling in G.S. Auto International Ltd. v. CCE was cited, emphasizing the classification criteria based on suitability for use with specific articles. As the goods were deemed suitable primarily for use with specific machine components, they were classified under Chapter Heading 87.08 instead of 73.18.

The Tribunal upheld the finding that the goods were specifically designed components, following the legal precedent established by the Apex Court. The classification criteria under Chapter Heading 87.08 were applied, considering the suitability of the goods for use with specific machine components. As the goods were determined to be primarily suitable for use with specific articles, they were classified under Chapter Heading 87.08 instead of 73.18. The Tribunal found no merit in Revenue's appeal to challenge the concurrent finding based on unchallenged facts in the case.

In conclusion, the Tribunal dismissed Revenue's appeal, maintaining the classification of "Flanges and Nuts" under Chapter Heading 87.08 based on their specific design and intended use. The judgment was pronounced on 25-10-2006.