2017 (2) TMI 374 - AT - Central Excise

Classification of manufactured product - Shapes and Sections - whether it is to be classified under Heading No. 7216.20 or 7308.90? - Held that - these goods cannot be considered as prepared for use in structurals. Consequently, they merit classification under 7216.20 and not under 7308.90 - appeal rejected - decided against Revenue.

Summary

Issues: Classification of goods under Central Excise Tariff Act

Classification under Heading No. 7216.20 or 7308.90:
The appeal was filed by the Revenue against the Commissioner of Central Excise (Appeals) order regarding the classification of goods manufactured by the assessee under Chapter 72 of the Central Excise Tariff Act. The original authority classified the goods under 7308.90, while the Commissioner (Appeals) favored classification under 7216.20. The Revenue sought the original classification under 7308.90. The key issue was whether the goods were to be classified under Heading No. 7216.20 or 7308.90 for the period under dispute from 1-1-2005 to 28-2-2005.

Manufacturing Process and Relevant Circular:
The manufacturing process involved the utilization of raw material in the form of bars, which were cold formed to give shape to sections like Profile, Guide Channel, and Bottom plates. These sections were then cut to required lengths and dispatched to customers without further operations in the factory premises. The Central Board of Excise & Customs Circular No. 46/90 clarified that cold roll formed sections prepared for use in structurals would be classified under 7308.90. The critical question was whether the goods had been prepared for use in structurals, determining their classification.

Analysis of Manufacturing Process:
The analysis of the manufacturing process revealed that the bars were cold formed to create sections, which were then cut to customer specifications without additional operations in the factory. The absence of further processing indicated that the goods were not prepared for use in structurals. The assessee's claim of additional operations like welding and shaping was not supported by the outlined manufacturing process. As a result, the goods were deemed not prepared for use in structurals, leading to their classification under 7216.20 instead of 7308.90.

Decision and Conclusion:
Based on the discussion and analysis, the Tribunal upheld the impugned order, rejecting the Revenue's appeal. The classification of the goods under Heading No. 7216.20 was deemed appropriate, considering the manufacturing process and the absence of operations indicating preparation for use in structurals. The judgment emphasized the importance of the manufacturing process and the criteria for determining the classification under the Central Excise Tariff Act.