1983 (10) TMI 237 - AT - Central Excise

Summary

Issues:
Classification of goods as "Pilfer-proof caps" under the Central Excise Tariff Schedule, invocation of Rule 9(2) for excisability, comparison with goods manufactured by other companies.

Analysis:
The judgment pertains to an appeal before the Appellate Tribunal CEGAT NEW DELHI regarding the classification of goods as "tear-off seals, B.T. caps, and Vial caps" under the Central Excise Tariff Schedule. The appellants contested the classification of these goods as "Pilfer-proof caps" under Item 42 of the Tariff Schedule. The Assistant Collector's order described the goods as intended for medicinal bottles to prevent pilferage, with visible arc-shaped cuts on top. The appellants argued that the goods were not pilfer-proof as they could not prevent pilferage effectively.

Regarding the first argument, the Tribunal found that the Tariff item's description of "Pilfer-proof caps" was broad and did not specify a particular type of caps. The absence of a statutory or standard definition required applying the description according to its plain meaning. The Tribunal also noted that the goods in question had visible arc-shaped cuts on top, which would indicate tampering and prevent pilferage effectively. Thus, the goods could be classified as "Pilfer-proof caps" based on the plain meaning of the description.

Concerning the second argument related to the invocation of Rule 9(2) for excisability, the appellants claimed that a classification list showing the goods as non-excisable had been approved earlier. However, they failed to provide evidence to support this claim. The Tribunal held that prior approval did not prevent authorities from reassessing based on new facts, rejecting the appellants' contention.

Regarding the comparison with goods manufactured by other companies, the appellants failed to provide details or evidence to support their claim that identical goods by others were treated differently. The Tribunal emphasized that the case before them involved the appellants' goods, and based on the facts presented, the classification was deemed correct.

In conclusion, the Tribunal upheld the order of the Appellate Collector, confirming the classification of the goods as "Pilfer-proof caps" under the Central Excise Tariff Schedule and rejecting the appeal.