1984 (6) TMI 219 - AT - Central Excise

Summary

Issues: Classification of flat steel product 'Pattis' under Tariff Item 26AA(iii) or 26AA(ia) of the Central Excise Tariff.

Analysis:
1. The appeal before the Tribunal concerned the classification of the appellants' flat steel product 'Pattis' under Tariff Item 26AA(iii) or 26AA(ia) of the Central Excise Tariff. The Assistant Collector of Central Excise and the Collector of Central Excise (Appeals) had classified the product as 'strips' under T.I. 26AA(iii), which was challenged by the appellants. The appellants claimed classification under sub-item (ia) of Item 26AA and exemption under specific notifications.

2. The appellants argued that their product should not be classified as 'strips' and that their factory was not a strip mill, hence the product could not be considered as 'strips'. They referred to relevant Government decisions and a previous Bench decision. Additionally, they highlighted that the I.S.I. authorities declined to certify their product as 'strip', which was presented as evidence. The appellants also pointed out similar products being classified differently by other manufacturers.

3. The respondent, represented by Shri S.N. Khanna, defended the lower authorities' classification of the goods as 'strips' under sub-item (iii) of T.I. 26AA. It was argued that the classification should not depend on whether the appellants' mill was a strip mill or not.

4. After considering the arguments and evidence presented by both parties, the Tribunal referred to a previous decision involving a similar issue. In that case, it was held that if a manufacturer's plant and machinery were not equipped for producing 'strips', products like 'pattis' could not be classified under sub-item (iii) of T.I. 26AA but should be classified under sub-item (ia) of T.I. 26AA. Since it was undisputed that the appellants' mill was not a strip mill, the Tribunal accepted the appellants' claim for classification under sub-item (ia) of T.I. 26AA.

5. Consequently, the Tribunal set aside the order classifying the appellants' product as 'strips' under sub-item (iii) of T.I. 26AA and accepted the classification under sub-item (ia) of T.I. 26AA. The appeal was allowed in favor of the appellants.