1988 (1) TMI 134 - AT - Central Excise

Summary

Issues: Jurisdiction of Excise authorities at Jamshedpur to change classification and withdraw facility under Rule 192

In this case, the respondents, engaged in manufacturing motor vehicles, procured fasteners from different locations under Item No. 68 of the Central Excise Tariff Schedule (CET). The Excise authorities at Jamshedpur later disagreed with the classification done by authorities at other locations and advised the respondents that the fasteners should be classified under Item No. 52 of the CET. The Assistant Collector upheld this reclassification, but the Appellate Collector overturned it, stating that Jamshedpur authorities lacked jurisdiction to change the classification. The main issue was whether the Jamshedpur authorities had the authority to alter the classification and withdraw the facility under Rule 192 from the respondents.

The department argued that Jamshedpur authorities were competent to change the classification and withdraw the facility under Rule 192, as the goods fell under a different item in the CET. On the other hand, the respondents contended that Jamshedpur authorities did not have the jurisdiction to alter the classification and withdraw the facility. The Tribunal analyzed Rule 173B(2) and defined "Proper Officer" as the officer in the jurisdiction of the producer's premises. It concluded that Jamshedpur authorities lacked jurisdiction to revise the classification approved by the Proper Officer in other locations. Referring to a previous case, the Tribunal emphasized that Excise authorities in one jurisdiction cannot change the classification done by authorities in another jurisdiction.

Based on the discussion, the Tribunal held that the direction to withdraw the facility under Rule 192 was also incorrect. Consequently, the impugned order by the Appellate Collector was upheld, and the appeal was dismissed.