2008 (11) TMI 494 - AT - Central Excise

Summary

Issues: Classification of goods under Tariff sub-headings and time-barred demand

Classification Issue:
The Appellate Tribunal CESTAT, Kolkata heard an appeal where the Revenue challenged an order classifying goods under sub-heading 8416.10 of the Tariff as 'all goods other than parts.' The Revenue argued that the goods should be classified under sub-heading 8416.90 as parts of a burner. The Tribunal noted that the Appellants manufactured 'North American Burner' comprising body assembly and oil and gas lance assemblies for furnaces. The Revenue claimed that the Appellants cleared parts to their Units for further processes like heat treatment and painting at a reduced duty. However, the Tribunal found that the goods manufactured by the Appellants retained essential characteristics of finished goods even after minor processes by other Units, supporting the original classification under sub-heading 8416.10.

Time-barred Demand Issue:
Regarding the limitation period, the Tribunal observed that the Respondents had filed necessary Classification Lists/Declarations under Rule 173B of the Central Excise Rules in 1995, 1996, and 1997, which was undisputed. Therefore, the Tribunal concluded that there was no evidence of the Respondents suppressing facts with the intent to evade duty payment. Consequently, the Tribunal dismissed the appeal, finding no merit in the Revenue's arguments. The judgment highlighted that the Respondents' compliance with filing requirements negated the claim of suppression, leading to the rejection of the appeal.