2000 (2) TMI 874 - AT - Central Excise

Summary

Issues:
Classification of product under Sub Heading 4901.90 or 4823.19 for duty purposes.

Analysis:
The appellants, manufacturers of printed gay wrappers, sought classification under Sub Heading 4901.90 at nil rate of duty. However, proceedings were initiated to classify the product under Sub Heading 4823.19, resulting in duty demands. In Appeal No. 1703/99, duty demand of Rs. 51,53,654/- with penalties and interest was confirmed for the period 1.3.1994 to 28.2.1996. In Appeal No. E/337/99, duty demand of Rs. 17,33,927/- for January to May 1997 was confirmed. The Ld. Advocate argued that a batch of 21 appeals, including the appellant's, had been decided in favor of classification under Sub Heading 4901.90, citing relevant judgments. The Revenue, represented by Ld. D.R. Shri S. Kannan, contested the Tribunal's decision, stating that the matter was being pursued in the Apex Court. Despite this, the Tribunal upheld the appellant's classification under 4901.90, allowing the stay application for waiver of pre-deposit and recovery. The Tribunal referred to its previous judgment where it concluded that the products were rightly classifiable under Sub Heading 4901.90 due to the nature of printing on the wrappers, providing specific information to customers. Therefore, all impugned orders were set aside, and the appeals were allowed, following the same rationale as in the previous case.

In conclusion, the Tribunal's decision in the present case aligned with its previous judgment on the classification issue, leading to the setting aside of impugned orders and allowing the appeals. The nature of printing on the wrappers played a crucial role in determining the correct classification under Sub Heading 4901.90, as it provided essential information to customers, influencing their purchasing decisions. The Tribunal's thorough consideration of the samples and relevant legal provisions supported the classification decision, ultimately resulting in relief for the appellants and setting aside the demands imposed by the Revenue.