2006 (10) TMI 266 - AT - Central Excise

Summary

Issues:
Classification of product "Grafoil" - whether as articles of graphite or parts of pumps under specific CET sub-headings.

The judgment by the Appellate Tribunal CESTAT, MUMBAI involved appeals from two orders of the Commissioner of Central Excise (Appeals) regarding the classification of the product "Grafoil." The Revenue contended that "Grafoil," comprising graphite tapes, packing rings, and gaskets, should be classified under CET sub-heading 6807.00 as articles of graphite, contrary to the Commissioner (Appeals)'s classification under CET sub-heading 8413.90 as parts of pumps. The Tribunal considered the Larger Bench decision in Grasim Industries Ltd. v. CC, Bombay, which held that certain products made of artificial graphite impregnated with resin are classifiable under a specific heading. Relying on this precedent and Chapter Note 1(a) to Chapter 84 of the Customs Tariff, which excludes articles under Chapter 68 from Chapter 84 coverage, the Tribunal concluded that "Grafoil" should be classified under the heading claimed by the Revenue, i.e., under CET sub-heading 6807.00. The Tribunal rejected the argument that "Grafoil" is not an article of graphite due to its composition, emphasizing that there is no evidence to support this claim and that the manufacturers consistently maintained it is an article of graphite. However, the Tribunal granted the benefit of cum-duty price to the respondents. Consequently, the impugned orders were set aside, and the appeals were allowed in favor of the Revenue.

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