2017 (7) TMI 790 - AT - Central Excise

Classification of goods - it was alleged that the appellant is giving a specified shape and also cutting them into required length, as per specifications of the customer after cold rolling for use as fabrication of shutters, therefore, it was alleged that the said products is classifiable under chapter Heading 7308.90 of the CETA, 1985 - Held that - As the process of manufacturing has been examined by this Tribunal in the case of Nav Durga Steel Products 2015 (10) TMI 37 - CESTAT NEW DELHI it is held that the resultant product is classifiable under section 7216.20 of the Tariff Act - the items in question manufactured by the appellant are more appropriately classifiable under chapter heading 7216.20 of the Tariff Act - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Classification of the appellant's product under the Central Excise Tariff Act, 1985.

Analysis:
The appellant appealed against the order confirming the demand of a differential duty due to the classification of their product. The appellant, a manufacturer of iron and steel sections, channels, and angles, classified their goods under sub-heading no. 7216.20 and paid duty accordingly. However, an investigation alleged that the products should be classified under chapter heading 7308.90 instead. The dispute arose as the appellant shaped and cut the products as per customer specifications for use in shutters. The Commissioner (A) upheld the classification under 7308.90, leading to a demand for duty and interest. The appellant contested this, citing a similar case where the Tribunal classified the products under 7216.20. The Tribunal examined the manufacturing process and relevant legal provisions to determine the appropriate classification.

The Tribunal considered the manufacturing process and legal provisions to resolve the classification issue. It noted that the impugned goods, obtained through cold rolling without further processing, did not qualify as products prepared for use in structures under chapter 73.08. Referring to a Board circular, the Tribunal clarified that cold roll-formed sections for structural use fall under sub-heading 7308.90. It emphasized that the impugned goods were not prepared for structural use, supporting the classification under 7216.20. The Tribunal also cited precedent judgments and rejected the Revenue's arguments, finding the appeals meritless and dismissing them. Based on the examination of the manufacturing process and precedent decisions, the Tribunal concluded that the appellant's items were appropriately classifiable under chapter heading 7216.20, overturning the impugned order and allowing the appeal with any consequential relief.

In conclusion, the Tribunal's detailed analysis of the manufacturing process, legal provisions, and precedent judgments led to the classification of the appellant's products under chapter heading 7216.20 of the Tariff Act. The decision highlighted the importance of specific manufacturing processes and statutory interpretations in determining the correct classification for duty purposes.