1987 (3) TMI 384 - AT - Central Excise

Summary

Issues: Classification of goods under Central Excise Tariff (CET), Time-barred review notice under Section 36(2) of the Central Excises and Salt Act.

Classification Issue:
The case involved the classification of veneer faced timber flanges manufactured by M/s. A.M. Industries under the Central Excise Tariff (CET). Initially, the Assistant Collector classified the goods under TI 16B(ii) CET, which was later challenged by the respondents in an appeal to the Appellate Collector. The Appellate Collector, in his order dated 9-4-1981, classified the goods under TI 68 CET. The Government of India issued a notice under Section 36(2) challenging this classification. The central issue was whether the goods should be classified as veneered block boards under TI 16B(ii) CET or as a distinct product under TI 68 CET. The Appellate Tribunal analyzed the manufacturing process, which involved laying wooden planks, veneering, cutting to a round shape, and punching a hole in the middle. The Tribunal held that after being cut and punched, the goods were distinct from veneered block boards and should be classified under TI 68 CET. The respondents' evidence of customers referring to the goods as timber drum flanges supported this distinction, indicating a unique name, character, and use for the product.

Time-barred Review Notice Issue:
The review notice issued by the Government of India under Section 36(2) of the Central Excises and Salt Act aimed to challenge the classification decision and the time-barred demand for duty. The Tribunal noted that the review notice was issued on 28-1-1982, while the Appellate Collector's order was dated 9-4-1981. Citing the decision in the case of Collector of Central Excise Bombay v. Shiv Kumar Ashok Kumar, the Tribunal determined that the review notice was time-barred concerning the demand for duty. As per the third proviso to Section 36(2), the review notice could not proceed on the time-barred duty aspect. Therefore, the Tribunal discharged the review notice in respect of the duty demand portion due to being barred by time.

In conclusion, the Appellate Tribunal upheld the classification decision of the Appellate Collector, classifying the goods under TI 68 CET. The appeal was dismissed, and the review notice issued by the Government of India was discharged due to being time-barred regarding the duty demand. The judgment provided a detailed analysis of the manufacturing process, commercial nomenclature, and legal provisions to determine the appropriate classification of the goods under the Central Excise Tariff.