2006 (11) TMI 424 - AT - Central Excise

Summary

Issues:
Classification of goods under excise duty - Whether jigs and fixtures supplied to Ministry of Defence should be classified under Heading 7308.90 or Heading 8479.19.

Analysis:
The appellant supplied "Jigs and Fixtures of PTC towers" to the Ministry of Defence, and central excise duty was paid classifying the items under sub-heading 8479.19. A show cause notice alleged short levy of duty due to incorrect classification, suggesting that the items should be classified under Heading 7308.90. The appellant contested this classification, arguing that jigs and fixtures should be classified under the chapter for machines and mechanical appliances, not under structure and parts of structure. The appellant pointed out that similar items manufactured in another unit of the appellant were classified under Heading 8479.10 in a different jurisdiction. The Tribunal agreed with the appellant, stating that jigs and fixtures used in the manufacture of other items cannot be classified under Heading 73.08 for structures, but rather under Heading 84 for machines and mechanical appliances. The Tribunal emphasized that revenue cannot adopt different classifications for the same product under different jurisdictions, making classification under Chapter Heading 84 more appropriate.

The Tribunal found merit in the appellant's contention that jigs and fixtures used in the manufacture of PTC towers should be classified under Heading 84 for machines and mechanical appliances, not under Heading 73.08 for structures. The Tribunal noted that the items in question were not for structural works like towers or bridges but were used in the manufacturing process. Referring to a previous classification order for similar goods manufactured in a different jurisdiction by the appellant, the Tribunal emphasized the consistency required in classification decisions by revenue authorities. Therefore, the Tribunal set aside the impugned order and allowed the appeal in favor of the appellant, providing consequential relief.

In conclusion, the Tribunal's decision clarified the correct classification of jigs and fixtures supplied to the Ministry of Defence, highlighting the distinction between items used in manufacturing processes and those used for structural works. The judgment emphasized the importance of consistent classification practices by revenue authorities across different jurisdictions to ensure fairness and accuracy in excise duty assessments.