2007 (9) TMI 179 - AT - Central Excise

PVC corrugated & plain sheets Impugned goods are only used for installation of various environmental projects such as Methane Recovery Anaerobic Digester System Classifiable U/H 8419 as Pollution Control Equipment not U/H 39.20 Assessee s appeal allowed

Summary

Issues involved:
Classification of PVC products under Central Excise Tariff Act, 1985; Dropping of proceedings by Revenue against the company; Confiscation of goods and imposition of redemption fine.

Classification Issue Analysis:
The main issue in this case revolves around the correct classification of PVC products manufactured by the company. The Revenue argues that the products should be classified under Chapter 39.20, while the company asserts they fall under Chapter heading No. 8419.00. The company clears these products as parts of a machinery used for "Methane Recovery Anaerobic Digestor System." The company's claim is supported by the fact that the products are used in Pollution Control Equipments, for which the Government granted partial duty exemption. The Government's notification specifically included parts of Pollution Control Equipments for exemption, indicating an intention to grant such benefits. The company's classification under Chapter 84 is further justified by the fact that competitors are also classifying similar products under the same chapter, and Revenue has accepted this classification elsewhere. The Tribunal agrees with the company's classification under Chapter 84, as the products are suitable for use solely in Pollution Control Equipments, aligning with Section Note 2(b) of Section XVI.

Proceedings Dropping Analysis:
The Revenue's appeals challenge the dropping of proceedings initiated against the company regarding the classification of goods. However, the Tribunal finds that the company's classification under Chapter 84 is appropriate based on the specific use of the products in Pollution Control Equipments. The Tribunal notes that the company's competitors are also classifying similar products under Chapter 84, ensuring industry norms are harmonized. Therefore, the dropping of proceedings by the Revenue is upheld.

Confiscation and Redemption Fine Issue Analysis:
Regarding the confiscation of goods and imposition of redemption fine, the company does not challenge the findings due to the small amounts involved. As the company does not contest the confiscation, the Tribunal dismisses their appeal on this matter. The cross-objection filed by the company in support of the impugned order is also disposed of. Ultimately, the appeals filed by the Revenue are rejected, and the company's appeal is dismissed as not pressed for, in line with the Tribunal's findings on classification and confiscation.

This detailed analysis of the judgment showcases the Tribunal's thorough consideration of the classification issue, the dropping of proceedings, and the confiscation aspect, resulting in a comprehensive and just decision.