2011 (8) TMI 857 - AT - Central Excise

Classification - connectors with wires - Connectors comprising of outer plastic moulded housing, terminals and pins made of brass, phosphor bronze, copper plated with tin. - These connectors are male connectors and female connectors. - Held That - Classifiable under 8536.90 and not under Heading 8544 (CCE vs. Unicon Connectors (2008 -TMI - 31950 - CESTAT NEW DELHI))

Summary

Issues:
Classification of connectors under Heading 8544.00.

Analysis:
The appellant, a manufacturer of connectors, appealed against the classification of their product under Heading 8544.00. The connectors in question comprised outer plastic moulded housing, terminals, and pins made of various materials. The appellant claimed the classification under Heading 8529.00, but a show-cause notice proposed classification under Heading 8544. The Asst. Commissioner classified the product under Heading 8544, which was upheld by the Commissioner (Appeals). The revenue challenged this decision, leading to a larger bench of the Tribunal determining the classification under Heading 8544.00. Subsequently, show-cause notices were issued demanding differential duty under Heading 8544 and denying the SSI exemption. The Asst. Commissioner upheld the classification and denial of exemption, which was affirmed by the Commissioner (Appeals) except for granting relief on small-scale exemption. The appeal before the Tribunal focused on the classification under Heading 8544.00.

In a previous case involving the same appellant, the matter was remanded by the Supreme Court for a fresh decision, leading to a larger bench decision classifying connectors with wires under Heading 8536.90, not under Heading 8544. The advocate for the revenue argued that the issue was settled by the larger bench decision and requested the bench to pass suitable orders. The Tribunal, after considering the arguments and case papers, noted that the larger bench had already settled the issue by classifying the product under Heading 8536.90 in the case of CCE vs. Unicon Connectors P. Ltd. Consequently, the Tribunal allowed the appeal of the appellant, as it was covered by the decision of the larger bench.

In conclusion, the Tribunal ruled in favor of the appellant, allowing the appeal against the classification of connectors under Heading 8544.00 based on the precedent set by the larger bench decision classifying similar products under Heading 8536.90.