1988 (6) TMI 275 - AT - Central Excise

Summary

Issues: Classification of mill bolts under Central Excise Tariff Item 52 or 68, Time-bar plea

Classification of Mill Bolts:
The main issue in this appeal was the classification of mill bolts under Central Excise Tariff Item 52 or 68. The department had classified the mill bolts under Tariff Item 52, while the respondent company argued that they should be classified under Tariff Item 68. The department contended that the primary function of the mill bolts was fastening the lining plates of machinery, making them classifiable under Tariff Item 52. The respondent argued that the mill bolts were machinery parts used in cement mills, meant for captive consumption, and not interchangeable with other machinery. The Tribunal considered the function and character of the goods, ultimately concluding that the mill bolts fell under Tariff Item 52 as they primarily functioned to fasten the lining plates into the mills, with no other functional activity. The Tribunal referenced previous decisions to support this classification, emphasizing that the name attached to the goods should not be the sole basis for classification, but rather the function and character of the goods should be considered.

Time-bar Plea:
Regarding the plea of time-bar, it was noted that the respondent company had not declared the manufacture of the mill bolts in their workshop, obtained a Central Excise License, or filed a classification or price list. The department discovered the manufacturing and utilization of the mill bolts during an inspection. As a result, the larger time limit of 5 years for the demand of duty was deemed applicable to the department. Consequently, the appeal of the department was allowed, setting aside the impugned order.

This judgment highlights the importance of considering the function and character of goods for classification under the Central Excise Tariff, rather than solely relying on the name attached to the goods. Additionally, it underscores the significance of compliance with Central Excise regulations to avoid time-barred issues in duty demands.