2003 (1) TMI 126 - HC - Central Excise

Summary

Issues:
Challenge to the order of CEGAT regarding reclassification of goods under Central Excise Tariff; Dispute over effective date of reclassification.

Analysis:
1. The petitioners challenged the CEGAT order seeking to confirm reclassification of goods under Chapter Heading 8409 of Central Excise Tariff from the date of a show cause notice issued in 1990. The petitioners did not dispute the classification but argued that subsequent approval under a different sub-heading affected the reclassification's effective date.

2. The petitioners manufactured goods initially classified under Chapter sub-heading 8409 but later under 7318 due to Excise Authorities' directive. A show cause notice in 1990 questioned this classification, leading to subsequent orders confirming classification under 7318. CEGAT's 2000 order reclassified the goods under 8409 from 1990, prompting a rectification application by the petitioners.

3. The High Court considered the approval of classification lists under 7318 after the show cause notice. The petitioners argued for a limited reclassification period based on these approved lists. The Revenue contended that all post-1991 approvals were subject to the pending appeal, supporting the effective date from the show cause notice.

4. The Court upheld the Tribunal's classification effective from the show cause notice date, rejecting the petitioners' argument for a limited reclassification period. It emphasized that post-1991 approvals were contingent on the appeal outcome, aligning with the Apex Court's precedent on classification effectiveness from the notice date.

5. Ultimately, the Court dismissed the petition, finding no merit in the petitioners' contentions. The judgment affirmed the Tribunal's decision on the effective date of reclassification under the Central Excise Tariff, in line with legal principles and precedents.

This detailed analysis covers the issues raised in the legal judgment, providing a comprehensive overview of the dispute and the Court's decision regarding the reclassification of goods under the Central Excise Tariff.