1984 (1) TMI 320 - AT - Central Excise

Summary

Issues:
1. Interpretation of the term "class" under rule 173-L of Central Excise Rules, 1944.
2. Determination of whether fire bricks and mortar fall under the same class of goods for excise duty purposes.
3. Applicability of previous Government of India decisions in similar cases.

Analysis:

Issue 1: Interpretation of the term "class" under rule 173-L
The Tribunal analyzed the term "class" under rule 173-L of the Central Excise Rules, 1944, noting the absence of a statutory definition. Resorting to dictionary meanings, the Tribunal interpreted "class" as a group possessing common attributes or characteristics. This broader interpretation guided the subsequent analysis of whether fire bricks and mortar could be considered under the same class for excise duty purposes.

Issue 2: Classification of fire bricks and mortar
The case involved the return of defective fire bricks by the respondent, who subsequently processed them into mortar and sold them after paying excise duty. The Revenue contended that bricks and mortar do not fall under the same class, citing examples from the Tariff Item 68. However, the Collector (Appeals) had accepted the appeal of the respondent, equating mortar and defective bricks as the same class of goods based on the judgment in the case of Brittania Biscuit Co. The Tribunal upheld this decision, emphasizing that both fire bricks and mortar were cleared under the same Tariff Item 68 and thus fell under the same class of goods.

Issue 3: Applicability of previous Government decisions
The respondent relied on a Government of India decision in the case of Brittania Biscuit Co., arguing that it fully covered their case. Additionally, the respondent referenced dictionary meanings and definitions to support the classification of fire bricks and mortar under the same class. The Tribunal also cited another Government of India decision involving cigarettes to illustrate the concept of goods falling in the same class despite variations in composition. These decisions reinforced the Tribunal's conclusion that fire bricks and mortar indeed belonged to the same class of goods for excise duty purposes.

In conclusion, the Tribunal dismissed the Revenue's appeal and upheld the order passed by the Collector (Appeals), affirming that fire bricks and mortar were to be treated as the same class of goods under rule 173-L of the Central Excise Rules, 1944.