2009 (4) TMI 720 - AT - Central Excise

Summary

Issues involved: Classification of hot rolled stainless steel Patta/Patti under Central Excise Tariff Act.

Classification Dispute:
The dispute revolves around the classification of hot rolled stainless steel Patta/Patti 600 mm width or more, with the Commissioner classifying it under Heading 7219.10 contrary to the appellant's claim of classification under heading 7219.30.

Appellant's Process:
The appellants purchase stainless steel flat from the open market, cut it to the required size, and roll it in a hot rolling mill without further processing before clearing it to customers as hot rolled Patta/Patti.

Contending Entries:
The Commissioner held that heading 7219.10 is appropriate as the Patta/Patti are flat rolled products not further worked than hot rolled. The distinction between headings 7219.10 and 7219.30 lies in the requirement for the latter to undergo a process other than cold rolling to qualify for classification.

Appellant's Contention:
The appellant argues that the product in question meets the description of Patta/Patti under heading 7219.30, emphasizing that the Commissioner's interpretation is erroneous as Patta/Patti does not need to undergo a process to be classified as such.

Tribunal's Decision:
After considering both sides' submissions, the Tribunal agrees with the appellant that hot rolled Patta/Patti falls under heading 7219.30. The Tribunal emphasizes that the specific mention of Patta/Patti against this heading indicates that the goods must first be Patta/Patti to qualify, regardless of subsequent processes.

Legal Interpretation:
Referring to General Note (IV)(B) of Chapter 72, the Tribunal asserts that Patta/Patti, even when subjected to processes other than cold rolling, should be classified under heading 7219.30. The principle of specific headings taking precedence over general ones is highlighted in the decision.

Precedent and Conclusion:
The Tribunal notes previous decisions classifying Patta/Patti under Chapter Heading 7220.30, supporting the appellant's classification under heading 7219.30. In light of the discussion, the impugned order is set aside, and the appeal is allowed in favor of the appellant.