2005 (3) TMI 159 - HC - Central Excise

Summary

Issues:
Classification of goods under Heading 7307.00 or 73.05 under sub-heading 7305.90.

Analysis:
1. The petitioner entered into a contract with TWAD board for the supply of MS Pipes and supplies of various sizes for water supply schemes. The petitioner classified the goods under Heading 73.05 and sub-heading 7305.90 for the classification of Central Excise.
2. The issue to be decided is whether the items fall within the classification 7307.00 or under 73.05 under sub-heading 7305.90.
3. The learned senior counsel for the petitioner argued that the bending of pipes at the site to suit specifications does not constitute "pipe fittings" under 7307.00. He contended that no manufacturing process is involved, the goods are not marketable, and duty cannot be levied.
4. The authorities and the tribunal classified the product under 7307.00 based on the definition of pipes and tubes in HSN. However, the product involves welding and bending to withstand water pressure, which aligns more with the description under 73.05.
5. The tribunal's error in defining the product as "pipe fittings" was highlighted, as the product is not used to connect two pipes but involves welding to withstand water pressure.
6. The definition of "pipe fittings" in HSN mainly involves connecting tubes, which does not apply to the product in question that is formed by welding and bending to withstand water pressure.
7. The Supreme Court's stance on interpreting tariff entries as per commercial parlance rather than scientific terms was emphasized, supporting the petitioner's argument.
8. The contention that only an appeal shall lie and the writ petition is not maintainable was refuted, citing precedents that question of alternative remedy should be raised early.
9. The judgment concluded that the impugned order is liable to be quashed, and the writ petition is allowed, with no costs incurred.