2005 (3) TMI 303 - AT - Central Excise

Summary

Issues: Classification of Rockwool products under Central Excise Tariff Act.

The judgment dealt with appeals arising from a common order where the Deputy Commissioner classified Rockwool products under Heading 6803.00 of the Central Excise Tariff Act, confirming demands for various periods. The appellants argued that their products, containing more than 25% of red mud, press mud, or blast furnace slag, should be classified under heading 6807 and 6807.10 after a Tariff amendment. The issue was whether the products should be classified under sub-heading 6803.00 or 6807. The appellants contended that their items were not Rockwool in pristine form but in artificial forms like resin bonded mats, unbonded mats, etc., thus falling under 6807 due to the presence of more than 25% of certain materials. The Larger Bench decision in CCE v. Punj Star Insulation Fibre Co. held that sub-heading 6803.00 covers Rockwool without qualification, and other varieties with more than 25% of specified materials fall under 6807. The Tribunal noted the findings and set aside the impugned orders, allowing the appeals based on the Larger Bench judgment.

The Tribunal considered the aspect of Rockwool/Slagwool under various headings of Chapter 68, noting that goods with over 25% of specified materials were exempted and later classified under Heading 6807 with an 8% duty rate. It was clarified that sub-heading 6803.00 covers Rockwool broadly, while sub-heading 6807 covers varieties with specified material content. The Tribunal emphasized that Rockwool with more than 25% of blast furnace slag should be classified under Heading 6807. The Tribunal highlighted that accepting the Revenue's argument would render part of Heading 68.07 redundant. As no other issues were raised, the appeals were disposed of, affirming the classification under Heading 6807.10 as decided by the Commissioner (Appeals), in line with the Larger Bench judgment.

The judgment reiterated that the products in question were not Rockwool in pristine form but in artificial forms with over 25% of specified materials. Following the Larger Bench judgment, the Tribunal set aside the impugned orders and allowed the appeals, directing the classification of the items under Heading 6807 and 6807.10 of the Central Excise Tariff. The operative portion of the order was pronounced in open court at the conclusion of the hearing.