2013 (12) TMI 28 - AT - Central Excise

Classification of copper bronze castings - Levy of duty Notification No.8/96 - Whether the copper bronze castings, as the same come out of the mould, are classifiable under Central Excise Tariff sub-heading 7419.91 Held that - The castings before being used as parts, are subjected to the process of grinding, fettling, proof machining and without these processes, the same are not usable as parts of submersible pumps Following Shivaji Works Ltd. vs. CCE, Aurangabad 1993 (5) TMI 98 - CEGAT, NEW DELHI - the castings, in question, would be correctly classifiable under heading 7419.91 and not as part of submersible pumps under sub-heading 8413.99, as there is no evidence produced by the appellant that the castings as such without being subjected to any process are usable as parts as regards the marketability there are a number of internet websites offering copper bronze castings, for sale which show that the market for this product exists there was no infirmity in the order Decided against Assessee.

Summary

Issues:
Classification of copper bronze castings under Central Excise Tariff sub-heading 7419.91 or sub-heading 8413.99 for duty purposes.

Analysis:
The appellant, a manufacturer of submersible pumps and parts, faced a dispute regarding the classification of copper bronze castings made in their Ghaziabad unit. The castings were used to manufacture parts of submersible pumps. The appellant argued that the castings, as they emerged from the moulds, were identifiable as parts of the pumps and should be classified under sub-heading 8413.99, making them fully exempt from duty under Notification No.8/96-CE. However, the department contended that the castings were not parts unless subjected to specific processes and should be classified under heading 7419.91, making them liable for duty. Three show cause notices were issued for duty amounting to Rs.17,90,502.

The Assistant Commissioner confirmed the duty demands in two orders-in-original, which were later set aside by the Commissioner (Appeals). The Tribunal, in its final order, held that castings alone cannot be classified as parts and that Rule 2(a) of interpretory Rules does not allow changing the classification based on essential character. The Tribunal allowed the department's appeal.

The appellant appealed to the Apex Court, which remanded the matter for fresh consideration. The Deputy Commissioner, in the denovo adjudication, confirmed the duty demand, considering the castings as castings and not parts. The Commissioner (Appeals) rejected the appeals, leading to the current appeal.

During the hearing, the appellant argued that the castings could be used as parts with minimal processing and should be classified as parts under Chapter 84. The department defended the impugned order, citing precedents and marketability of the castings.

The Tribunal found that the castings, before processing, were classifiable under heading 7419.91, not as parts of submersible pumps. Citing precedents, the Tribunal concluded that the castings were correctly classified under 7419.91. Additionally, evidence of marketability of copper bronze castings was found, supporting the classification.

In conclusion, the Tribunal dismissed the appeal, finding no infirmity in the impugned order based on the classification and marketability of the castings.

(Order pronounced in the open court on 25.6.2013)