2005 (8) TMI 668 - AT - Central Excise

Summary

Issues: Classification of Domestic Flour Mill under Heading 8437.00 or 85.09.

Analysis:
The disputed issue in the revenue's appeal pertains to the classification of the Domestic Flour Mill under Heading 8437.00 as claimed by the assessee or under 85.09 as contested by the Revenue. Both the authorities below acknowledged Board Circular No. 82/82/94-CX, dated 5-12-94, which clarifies that the Domestic Flour Mill is properly classifiable under Heading 84.37. The Assistant Commissioner did not follow the circular citing that the period involved predates its issuance. Conversely, the Commissioner (Appeals) supported the assessee's position, emphasizing that the Circular merely clarifies the correct classification and should not be disregarded based on its effective date. The Commissioner referred to the Supreme Court's decision in Ranadey Micronutrients v. Collector of Central Excise, which supports this view.

Furthermore, it was noted that the circular is binding on revenue authorities, and the Supreme Court's decision in Workwell Engineering Co. v. Collector of Central Excise, Vadodara highlighted the relevance of the Board's Circular in determining the classification of the Domestic Flour Mill. Considering these aspects, the Tribunal found no merits in the revenue's appeal and consequently rejected it.