2007 (3) TMI 262 - SC - Central Excise

Whether connectors fitted with wire are classifiable under S.H. No. 8544.00 as held by the Tribunal or under S.H. No. 8536.90 as connectors as held by the Commissioner (Appeals) or under S.H. No. 8529.00 as claimed by the appellant? Held that - Since the Tribunal has not dealt with any of the findings recorded by the Collector (Appeals), the matter requires a fresh look at the hands of the Tribunal. Accordingly, we accept this appeal; set aside the order of the Tribunal and remit the matter to the Tribunal for a fresh decision in accordance with law.

Summary

Issues involved:
Classification of connectors with wire under Central Excise Tariff Act, 1985.

Detailed Analysis:

1. Issue of Classification: The main issue in this case is the classification of connectors fitted with wire under the Central Excise Tariff Act, 1985. The appellant claimed that the connectors should be classified under S.H. No. 8529.00 as parts of TV receivers, while the Tribunal classified them under S.H. No. 8544.00. The Commissioner (Appeals) held that they should be classified under S.H. No. 8536.90.

2. Appellant's Manufacturing Process: The appellant is engaged in manufacturing connectors made of various materials like engineering plastics, brass, and copper, plated with different metals. They claimed that these connectors are used as parts of TV receivers and other electronic devices.

3. Classification Disputes: The appellant initially classified the connectors under S.H. No. 8529.00, benefiting from a specific notification for S.S.I units. However, a show cause notice was issued questioning this classification and proposing classification under S.H. No. 8544.00.

4. Orders and Appeals: The original authority classified the items under S.H. No. 8544.00, which was challenged by the appellant. The Collector (Appeals) later classified the items under S.H. No. 8536.90 based on various circumstances and expert opinions.

5. Tribunal's Decision: The Tribunal set aside the Collector (Appeals) findings and classified the items under S.H. No. 8544.00, relying on the tariff provisions and explanatory notes to the Harmonized System Nomenclature (HSN).

6. Legal Arguments: The appellant argued that manufacturing connectors with wire is distinct from manufacturing wires, emphasizing that the essential characteristic is the connectors, not the wires. The respondent supported the Tribunal's decision, emphasizing the Tribunal's findings.

7. Supreme Court Judgment: The Supreme Court found that the Tribunal did not address the specific circumstances considered by the Collector (Appeals) in its decision. As a result, the Court set aside the Tribunal's order and remitted the matter back to the Tribunal for a fresh decision, emphasizing the need for a detailed examination of the issues raised by the Collector (Appeals).

In conclusion, the Supreme Court's judgment highlights the importance of addressing all relevant circumstances and findings in classification disputes under the Central Excise Tariff Act, 1985. The case underscores the need for a thorough analysis by the Tribunal to ensure a just and accurate classification of goods, emphasizing the significance of specific details and expert opinions in such matters.