2008 (2) TMI 773 - AT - Central Excise

Summary

Issues:
- Classification of "Micro Crystalline Cellulose Powder" under Central Excise Tariff Act, 1985.
- Validity of the Commissioner (Appeals) order dated 29-8-03.
- Reliance on the decision of the Tribunal in the respondent's case.

Classification Issue:
The dispute in this case revolved around the classification of "Micro Crystalline Cellulose Powder" manufactured by the respondent, with the Department claiming it should fall under Chapter 3912.90, while the respondent argued for classification under 2942.00. The original authority, Commissioner (Appeals), and CEGAT had previously ruled in favor of the respondent. However, the original authority's order dated 29-5-2002 imposed duty and penalty on the respondent, leading to an appeal by the Department against the Commissioner (Appeals) order dated 29-8-03. The Department contended that the original authority's decision was based on the Chief Chemist's opinion, arguing for setting aside the Commissioner (Appeals) order.

Commissioner (Appeals) Order Validity:
The Commissioner (Appeals) relied on the CEGAT's order in the respondent's case while allowing the appeal, prompting the Department's appeal. The original authority's decision was challenged by the Department, emphasizing that the opinion of the Chief Chemist should not create an estoppel in revenue matters. The Tribunal analyzed the reasoning behind the original authority's decision, which deviated from previous rulings, and found that the product was correctly classifiable under Chapter 3912.90 based on specific descriptions and common trade parlance.

Reliance on Tribunal's Decision:
The Tribunal referred to its earlier order dated 16-7-98, which had decided the issue of classification in favor of the respondent. The Tribunal's findings highlighted that the impugned product was not proven to be cellulose or its derivatives in primary form, as required under Chapter 39. The Chief Chemist's opinion was deemed insufficient to overturn the Tribunal's prior decision, and the Tribunal emphasized that the revenue involved should not dictate the decision to appeal. As the Department had not appealed the Tribunal's earlier decision, it had attained finality, leading to the rejection of the Department's appeal in this case.

In conclusion, the Appellate Tribunal upheld the Commissioner (Appeals) order dated 29-8-03, rejecting the Department's appeal and affirming the classification of "Micro Crystalline Cellulose Powder" under Chapter 3912.90 of the Central Excise Tariff Act, 1985. The judgment emphasized the importance of specific descriptions, common trade parlance, and the finality of tribunal decisions in revenue matters.