1986 (6) TMI 159 - AT - Central Excise

Summary

Issues: Classification of non-automotive gaskets under Central Excise Tariff (CET) - Whether gaskets made from asbestos sheets are correctly classified under item No. 22F or item No. 68 CET.

In the present case, the dispute revolved around the classification of non-automotive gaskets manufactured by the respondents under the Central Excise Tariff (CET). The Assistant Collector initially classified the gaskets under item No. 22F of the CET, while the Appellate Collector classified them under item No. 68 CET. The Central Government, after examining the case records, issued a notice calling for a show cause as to why the order-in-appeal should not be set aside. The main contention was whether the gaskets made from compressed asbestos jointing sheets should be classified under item No. 22F or item No. 68 CET.

The respondents argued that the gaskets, being the products of the manufacturing process of cutting sheets into different sizes and shapes, should continue to remain classified under item No. 22F CET and not be liable to duty again under item No. 22F. On the other hand, the Department contended that the gaskets fell rightly under item No. 22F and were liable to be charged duty under that classification.

The Tribunal analyzed the relevant legal provisions and precedents to determine the correct classification. It was noted that the gaskets were not the direct result of manufacture from fiber or yarn but were manufactured from asbestos sheets made from fiber and yarn. The Tribunal interpreted the phrase "manufactures therefrom" in item No. 22F(iv) to imply direct manufacture from fiber or yarn, leading to the conclusion that the gaskets did not fall under item No. 22F(iv) but under item No. 68 CET. The decision was based on the specific wording of the tariff and the nature of the manufacturing process involved.

In conclusion, the Tribunal upheld the impugned order, dismissed the appeal, and discharged the show cause notice, ruling that the non-automotive gaskets should be classified under item No. 68 CET rather than item No. 22F of the Central Excise Tariff. The judgment provided a detailed analysis of the classification issue, considering the manufacturing process, legal interpretations, and relevant precedents to reach a definitive conclusion on the correct classification of the gaskets.