2015 (8) TMI 944 - SC - Central Excise

Classification of unprocessed and dipped nylon tyre cord fabric - Whether the respondent-assessee would be entitled to avail exemption from excise duty leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 - Held that - CESTAT has, without discussing the facts of this case or analyzing the same, allowed the appeal of the respondent herein following the order of this Court in Commissioner of Central Excise, Goa and Chennai Vs. M.R.F. Ltd., Chennai 2005 (1) TMI 110 - SUPREME COURT OF INDIA , with the observation that the said judgment settles the matter of classification of dipped nylon tyre cord fabric under heading 5905 upto 16.3.1995 and under heading 5906 after the aforesaid date. - After going through the judgment in M.R.F. Ltd. (supra) Court finds that classification dispute was not decided and on the contrary for this very purpose the matter was remitted to the Commissioner - order of the Tribunal is set aside and the matter is remitted to the Commissioner for fresh consideration - Decided in favour of Revenue.

Summary

Issues: Classification of unprocessed and dipped nylon tyre cord fabric for exemption from excise duty under the Additional Duties of Excise (Goods of Special Importance) Act, 1957.

Classification Dispute Analysis:
The Supreme Court addressed the dispute concerning the classification of unprocessed and dipped nylon tyre cord fabric for excise duty exemption. The Customs, Excise & Service Tax Appellate Tribunal had allowed the respondent's appeal based on a previous judgment without detailed analysis. The Court noted that the earlier judgment did not resolve the classification issue and had actually remitted the matter for further consideration. Consequently, the Court set aside the Tribunal's order and remitted the case to the Commissioner for a fresh decision. The Court emphasized that the Commissioner should resolve the appeal within six months from the date of the order.

Conclusion:
The Supreme Court's judgment focused on the proper classification of unprocessed and dipped nylon tyre cord fabric for excise duty exemption under the relevant legislation. By overturning the Tribunal's decision and remitting the case for fresh consideration, the Court ensured a thorough analysis of the classification issue by the Commissioner. The directive to expedite the decision within six months underscores the importance of resolving such disputes promptly and accurately within the legal framework.