1979 (2) TMI 113 - CGOVT - Central Excise

Summary

Issues:
1. Interpretation of sub-Item (ia) of Item 26AA of the C.E. Tariff.
2. Application of the Mysore High Court judgment.
3. Eligibility for exemption under Notification No. 206/63-C.E.

Analysis:
1. The Central Government reviewed orders-in-appeal regarding the classification of forged products under sub-Item (ia) of Item 26AA of the C.E. Tariff. The Appellate Collector held that the products did not fall under this category as they were machinery parts. However, the Government found that the products were forged shapes and sections, falling within the scope of sub-Item (ia) unless specified elsewhere in the tariff. The Government concluded that the Appellate Collector erred in applying the Mysore High Court judgment, which was about agricultural implements, to these cases involving forged products without a distinct identity beyond being forged shapes and sections.

2. The parties argued based on the Mysore High Court judgment, which dealt with the classification of agricultural implements under sub-Item (ia) of Item 26AA. However, the Government noted that the judgment's context was different as it concerned products with a distinct identity, unlike the forged products in question. The Government emphasized that the tariff entry encompassed all forged shapes and sections unless specified elsewhere, and the products in this case did not have an independent identity apart from being forged shapes and sections. Therefore, the reliance on the Mysore High Court judgment was misplaced.

3. Additionally, the Government determined that since the forged products were manufactured from duty-paid ingots, they were not eligible for exemption under Notification No. 206/63-C.E. Consequently, the Government set aside the orders-in-appeal and restored the orders passed by the Assistant Collector, upholding the duty demanded from both parties. This decision was made under the powers vested in the Government under Section 36 of the C.E. and Salt Act, 1944.