2018 (11) TMI 1287 - HC - Central Excise

Classification of the vehicle Mahindra Armada - It is the case of the Respondent that the vehicle Mahindra Armada is classifiable under Chapter 8702.00 while it the Revenue s contention that its is appropriately classifiable under head 8703.00 of the Tariff Act - Held that - Apex Court in Navin Chemicals Mfg. & Trading Co. Ltd., v/s. Collector of Customs 1993 (9) TMI 107 - SUPREME COURT OF INDIA has held that a dispute as to classification of goods directly relates to the rate of duty for purposes of assessment. Thus, the remedy, if any, of the Revenue would be an Appeal from the impugned order before the Hon ble Supreme Court under Section 35L of the Act as this Appeal is not maintainable under Section 35G of the Act before this Court - appeal disposed off.

Summary

Issues:
1. Appropriate classification of the vehicle "Mahindra Armada" under the Central Excise Tariff Act, 1985.
2. Maintainability of an Appeal under Section 35G of the Central Excise Act from an order on classification.

Analysis:

Issue 1: Appropriate classification of the vehicle "Mahindra Armada"
The Tribunal was faced with the dispute regarding the correct classification of the vehicle "Mahindra Armada" under the Central Excise Tariff Act, 1985. The Respondent argued that the vehicle should be classified under Chapter 8702.00, while the Revenue contended that it should be classified under head 8703.00 of the Tariff Act.

Issue 2: Maintainability of an Appeal under Section 35G
The High Court clarified that an Appeal under Section 35G of the Central Excise Act from an order on classification is not maintainable before the Court. Citing precedents, the Court highlighted that disputes related to the classification of goods directly impact the rate of duty for assessment purposes. Referring to previous judgments, the Court emphasized that appeals on classification issues should be directed to the Supreme Court under Section 35L of the Act, rather than being entertained by the High Court under Section 35G.

In conclusion, the High Court dismissed the Appeal, stating that the appropriate remedy for the Revenue, if desired, would be to appeal the impugned order before the Supreme Court under Section 35L of the Central Excise Act. The Court's decision was based on the understanding that issues of classification fall outside the purview of appeals under Section 35G and should be addressed at the Supreme Court level.