2017 (7) TMI 454 - AT - Central Excise

Classification of goods - Indian Kattha - whether the classification of the goods manufactured would fall under Tariff Item No. 14049050 or classifiable under Tariff Item No. 13021990 which is a residual entry with a description as others - Held that - similar issue decided in the case of M/s Indian Wood Products Co. Ltd. Versus Commissioner, Customs & Central Excise-Meerut-II 2017 (2) TMI 764 - CESTAT ALLAHABAD , wherein this Tribunal had already decided the classification of identical goods under Tariff Item No. 14049050 - appeal dismissed - decided against Revenue.

Summary

Issues:
1. Classification of goods under Tariff Item No.14049050 or Tariff Item No.13021990.
2. Adherence to judicial discipline in deciding cases with pending issues before a higher forum.

Analysis:
Issue 1: The appeals arose from a common Order-in-Appeal where two respondents, M/s Brij Kattha and M/s Kanchan Udyog, were issued Show Cause Notices regarding the classification of goods they manufactured. The Revenue contended that the goods should be classified under Tariff Item No.13021990, while the respondents argued for classification under Tariff Item No.14049050. The Original Authority decided in favor of the respondents, dropping the duty demands. The Commissioner (Appeals) upheld the decisions, leading to the appeals by Revenue. The grounds of appeal focused on the classification issue, citing a similar case involving M/s Indian Wood Products Co. Ltd. where the classification was confirmed differently. However, the First Appellate Authority considered various factors like Tariff entries, commercial parlance, and other evidence to support the classification under Tariff Item No.14049050 for the respondents. Additionally, a Tribunal decision in a related case further supported this classification. Consequently, the Tribunal dismissed the appeals by Revenue, affirming the classification under Tariff Item No.14049050 for the respondents.

Issue 2: The Revenue argued that the lower authority should have followed judicial discipline by aligning with the decision in the pending case involving M/s Indian Wood Products Co. Ltd. However, the Tribunal found no merit in this argument as it had already decided a similar classification issue in favor of the respondents in a related case. Therefore, the Tribunal dismissed the appeals by Revenue, indicating that the lower authority's decision was appropriate based on the facts and legal considerations presented in the case.

In conclusion, the Tribunal upheld the classification of goods under Tariff Item No.14049050 for the respondents, rejecting the appeals by Revenue and emphasizing the importance of considering specific case facts and legal precedents in making classification determinations.