2012 (1) TMI 113 - AT - Central Excise

Waiver of pre-deposit of duty - Classification of goods - spike-guard - Classification under Tariff Heading 8536 or 8537 - Held that - item in question is a device which is used for multiple uses from a single plug-point for distribution of electricity - As this device spike-guard consists of plug and multiple electric points including switches therefore it cannot be classifiable under Tariff Heading 8536 of Central Excise Tariff - prima facie the spike-guard is classifiable under Tariff Heading 8537 of the Central Excise Tariff. In these circumstances, we find that the amount already deposited is sufficient for hearing of the appeal. Pre-deposit of the remaining duty, interest and penalty is waived and recovery thereof stayed during the pendency of the appeal - Stay granted.

Summary

Issues: Classification of goods under Tariff Heading 8536 or 8537 of the Central Excise Tariff.

Analysis:
- The applicant sought waiver of pre-deposit of duty, interest, and penalty amounting to Rs. 16,81,462, having already paid Rs. 5 lakhs.
- The dispute arose regarding the classification of 'spike-guard' under Tariff Heading 8536 by the Revenue, considering the packing and repacking as manufacturing, while the applicant contended it should be classified under Tariff Heading 8537 covering Boards, Panels, etc.
- The applicant argued that the spike-guard, being a device with multiple uses from a single plug-point for electricity distribution, should fall under Tariff Heading 8537, which includes panels with sockets, switches, fuses, and plugs.
- Contrarily, the Revenue insisted that the spike-guard, merely comprising switches and plug points, should be classified under Tariff Heading 8536 for apparatus related to electrical circuits.
- The Tribunal, after considering the submissions, prima facie classified the spike-guard under Tariff Heading 8537, finding the already deposited amount sufficient for the appeal's hearing, thus waiving the remaining duty, interest, and penalty with a stay on recovery during the appeal's pendency.
- Ultimately, the stay petition was allowed, and the classification issue was resolved in favor of the applicant under Tariff Heading 8537, granting relief from the pre-deposit requirement and recovery during the appeal process.