2002 (11) TMI 99 - SC - Central Excise

Summary

Issues involved: Classification of 'slides' and 'slits' as excisable goods under the Central Excise Tariff Act, 1985.

Summary:
The Supreme Court heard appeals related to the classification of 'slides' and 'slits' as excisable goods under the Central Excise Tariff Act, 1985. The appellant-assessee challenged orders from different Customs, Excise, and Gold (Control) Appellate Tribunals regarding the excisability of these items. The main question was whether 'slides' and 'slits' from cigarette packets are excisable goods.

In Civil Appeal No. 6621 of 1995, the appellant claimed classification of 'slides' under a specific heading at 'nil' duty, but the authorities disagreed. The Collector (Appeals) classified 'slides' under a different sub-heading and dismissed the appeal. The Tribunal upheld this decision without specifically addressing the manufacturing process. The same issue arose in Civil Appeal No. 498 of 1999 concerning both 'slides' and 'slits'.

The appellant argued that the Tribunal did not consider the manufacturing process and based marketability findings on assumptions. The Revenue contended that the excisability issue was raised late in the proceedings, limiting evidence presentation. Despite this, the Court decided to set aside the orders and remand the cases for fresh disposal to allow both parties to present evidence.

The Court found merit in the Revenue's argument but decided to remand the cases for a fair hearing. The orders under challenge were set aside, and the cases were remanded to the Commissioner (Appeals) for fresh disposal in accordance with the law. The appellant was directed to pay costs to the respondent within two weeks due to the necessity of remanding the cases. Ultimately, the civil appeals were allowed.