1989 (6) TMI 182 - AT - Central Excise

Summary

Issues:
Correct classification of Glandnut, Bonnet & Union parts of valves and cocks under Tariff Item 68 or 52 CET.

Detailed Analysis:

1. Background: The issue involves the classification of Glandnut, Bonnet, and Union parts of valves and cocks manufactured by the appellants. Initially classified under Tariff Item 68, the department later issued a show cause notice to reclassify them under Tariff Item 52 CET.

2. Appeals: The respondents succeeded in their appeal before the Collector of Central Excise (Appeals), leading to two appeals filed by the Revenue challenging the classification.

3. Key Question: Both appeals revolve around determining whether the goods in question are to be classified as fasteners or not, with specific reference to Tariff Items 68 and 52 CET for different periods.

4. Appellant's Arguments: The learned SDR argued that the goods should be classified as nuts and bolts under the relevant tariff headings, relying on previous judgments to support the classification.

5. Respondent's Arguments: The consultant representing the respondents opposed the reclassification, citing that the classification under Tariff Item 68 was forced and that rectification lists have prospective effect. He also argued that the old classification list was not operative at the time of the show cause notice.

6. Classification under New Tariff: The consultant contended that under the new tariff, the correct classification should be 8418.99, emphasizing that the goods are parts of machines covered by Chapter 84.

7. Final Decision: After examining the samples and functions of the goods, the tribunal held that the Glandnut should be classified under Tariff Item 52 and later under sub-heading 8313.10, while upholding the classification of Bonnet and Union as not being nuts or bolts. The appeal was partly allowed based on these findings.

8. Conclusion: The tribunal disposed of the appeals accordingly, considering the classification of each part based on its function and rejecting arguments that were rendered immaterial by the decision on classification.