2005 (4) TMI 123 - AT - Central Excise

Summary

Issues: Classification of 'mis-rolls' under Tariff Chapter Heading 7207.90 of CETA, 1985.

In the present case, the Commissioner of Customs & Central Excise, Hyderabad-IV Commissionerate classified 'mis-rolls' arising during the hot-rolling manufacturing process as semi-finished goods under Tariff Chapter Heading 7207.90 of CETA, 1985. This classification led to a demand for differential duty, imposition of a penalty, and interest under relevant provisions. The appellant challenged this classification, arguing that 'mis-rolls' should be considered as waste and scrap to avail exemption benefits under Notification No. 49/97-C.E. The appellant cited case laws to support their argument. On the other hand, the Revenue contended that 'mis-rolls' are indeed semi-finished products, emerging during the manufacture of rods and bars, and should be classified as such. The adjudicating authority relied on a Board's Circular to support this classification, stating that 'mis-rolls' are solid sections in semi-finished form used directly for re-rolling in smaller hot re-rolling mills. The appellants' previous classification under Heading 7207.90 was also considered. Ultimately, the Tribunal upheld the classification of 'mis-rolls' under Heading No. 7207.90, stating that the demand arose from different interpretations of the law, not from any fraudulent intent, hence no penalty or interest under Section 11AB was justified. The appellant was directed to pay the differential duty demanded after adjusting the amount already paid, and the appeal was disposed of accordingly.