2007 (4) TMI 575 - AT - Central Excise

Summary

Issues: Classification of goods for duty payment under different invoices, applicability of Circular No. 252/86/96-CX for classification, evidence required for establishing the case, dispute regarding supply of goods as "replacement parts."

Classification of Goods: The appeal concerns the classification of goods manufactured and cleared by the respondents under separate invoices based on a single purchase order. The department claimed differential duty by classifying the goods as parts of machinery under various Headings of Chapter 84, contrary to the original classification under SH 8439.00. The Commissioner (Appeals) upheld the department's decision, leading to the Revenue's appeal. The learned SDR argued that there was no evidence to prove that the parts supplied would form a complete machinery and that the Circular No. 252/86/96-CX procedure should have been followed for such classification.

Evidence and Procedure: The Tribunal noted that the department needed to establish its case with appropriate evidence within the scope of the Show Cause Notice (SCN). The Revenue contended that the parts supplied were not sufficient to form a complete machinery under SH 8439.00 without additional bought-out items. The Tribunal emphasized that the question of whether the Board's circular applied and whether the goods were supplied as "replacement parts" should be addressed at the original level, pending clarification on the scope and ambit of the SCN, which was not provided.

Decision and Remand: The Tribunal set aside the impugned order and allowed the appeal by remanding the case to the original authority for a fresh adjudication. Both parties were directed to be given a reasonable opportunity to present their arguments, considering the observations made in the order. The decision was dictated and pronounced in open court, ensuring a fair and thorough review of the classification dispute.