1989 (4) TMI 174 - AT - Central Excise

Summary

Issues:
1. Validity of payment of excise duty under protest for unprocessed Tyre Cord Fabrics.
2. Interpretation of Notification No. 156/83-CE dated 21-5-1983.
3. Applicability of Rule 233B of Central Excise Rules, 1944.
4. Conflict in decisions of the Hon'ble Supreme Court regarding classification of unprocessed nylon tyre cord.

Analysis:
1. The case involved the appellants' intimation to pay Excise duty on Tyre Cord Fabrics under protest, which was challenged through a Show Cause Notice citing Notification No. 156/83-CE. The Assistant Collector and the Collector (Appeals) upheld the duty payment under protest. The appellants contested these orders.

2. The appellants argued based on conflicting decisions of the Hon'ble Supreme Court regarding the classification of unprocessed nylon tyre cord as fabrics. They sought to await the outcome of related proceedings and requested to keep their protest letters pending. The department reiterated the correctness of the lower authorities' views and highlighted the appellants' failure to challenge the assessment order or classification list.

3. The Tribunal analyzed the legality of the proceedings initiated by the appellants under Rule 233B of Central Excise Rules, 1944. It was observed that the appellants did not meet the rule's requirements as they had not furnished grounds for protest and had not pursued the normal appeal or revision procedures available to them. The Tribunal emphasized that the conflict in Supreme Court decisions did not automatically entitle the appellants to pay duty under protest under Rule 233B.

4. The Tribunal refrained from deciding on the conflict in the Supreme Court decisions but concluded that, based on the case facts, the appellants were not entitled to pay duty under protest under Rule 233B. The judgment highlighted that the appellants' failure to follow the prescribed procedures under the Central Excise Rules precluded them from availing the benefit of paying duty under protest.