2009 (4) TMI 511 - AT - Central Excise

Classification - classification of hot rolled stainless steel Patta/Patti - classified the same under Heading 7219.10 as against appellant s claim of classification under heading 7219.30 - Held that - finished goods may be subjected to further finishing treatment or the converted into other articles by a series of operations such as surface treatments or other operations to improve the properties or appearance of the metal, product against rusting, corrosion etc. Such treatment would not affect the heading in which the goods are classified only as otherwise provided in the text of certain headings, heading which specifically covers the product by name, is to be preferred over other general headings. In view of the above, hot rolled Patta/Patti are properly classifiable under heading 7219.30. The impugned order is, accordingly, set aside, appeal is allowed with consequential relief to the appellant.

Summary

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

Analysis:
The appellants, engaged in manufacturing excisable goods under Chapter 72, disputed the classification of hot rolled stainless steel Patta/Patti 600 mm width or more. The Commissioner classified it under Heading 7219.10, contrary to the appellant's claim of classification under heading 7219.30. The dispute centered on whether the product should be classified as not further worked than hot-rolled or subjected to any process other than cold rolling.

The appellants purchased stainless steel flat from the market, cut it to size, and rolled it in a hot rolling mill, resulting in hot rolled Patta/Patti of 600 mm width or more. The Commissioner contended that since no further processing was done on the goods after hot rolling, they fell under Heading 7219.10. In contrast, the appellants argued that the product should be classified under heading 7219.30 as Patta/Patti, even without undergoing additional processes like annealing or tempering.

The Tribunal analyzed the entries under Chapter 72, specifically focusing on the distinction between heading 7219.10 and 7219.30. It was observed that the description of goods as Patta/Patti under heading 7219.30 implied that the product should first be Patta/Patti before any additional processes. The Tribunal agreed with the appellant that Patta/Patti falls under heading 7219.30, emphasizing that processes like annealing or tempering do not change the classification if the goods are initially Patta/Patti.

Referring to General Note (IV)(B) of Chapter 72, the Tribunal highlighted that even if Patta/Patti undergo processes other than cold rolling, they would still fall under heading 7219.30. The principle of specific headings prevailing over general headings was underscored, leading to the conclusion that hot rolled Patta/Patti should be classified under heading 7219.30. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellant, granting consequential relief.

In conclusion, the judgment clarified the classification of hot rolled stainless steel Patta/Patti under the Central Excise Tariff Act, emphasizing the specific description of goods and the impact of processes on classification under relevant headings.