2004 (11) TMI 146 - AT - Central Excise

Summary

Issues:
Classification dispute between the department and the assessee regarding Satellite Receiver, Modulators, Channel Mixers, Feed Horn, and Power Divider under Central Excise Tariff Act.

The judgment by the Appellate Tribunal CESTAT, CHENNAI, addressed a classification dispute between the department and the assessee concerning the categorization of specific goods under the Central Excise Tariff Act. The department sought to classify the items under Chapter Heading 85.43, while the assessee argued for classification under Heading 85.29. The department relied on a Board's Order issued under Section 37B of the Central Excise Act, which classified the goods under Heading 85.43. However, the assessee contended that this order should not have retrospective effect. The Tribunal noted that the dispute was a virgin dispute based on the original classification list filed by the assessee for the period of June to November 1994. It was established that an order under Section 37B could not have retrospective effect, as consistently held by the Tribunal, citing precedents like Eswaran & Sons Engineers Ltd. v. CCE, Madras, and Southern Switchgear Ltd. v. CCE, Chennai. These decisions were in line with the Hon'ble Supreme Court's judgment in H.M. Bags Manufacturers v. CCE. Notably, no contrary ruling from the Apex Court was presented by the department. Consequently, the Tribunal upheld the classification of the goods under Heading 85.29 for the disputed period, setting aside the impugned order and allowing the appeal.

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