1990 (8) TMI 237 - AT - Central Excise

Summary

Issues:
1. Classification of 'Steel welded stepped tubular electric poles' under Tariff Item 26AA or Tariff Item 68 of the Central Excise Tariff as of 9th November 1982.
2. Liability of the respondents to pay duty demanded against the show cause notice dated 18th December 1982.

Analysis:
1. The respondents claimed exemption for manufacturing 'Stepped pipes and Tubes (Tubular Poles)' under Notification 69/73-C.E., dated 1-3-1973. The department alleged duty evasion due to incorrect declaration and classified the goods under T.I. 68. The Collector held in favor of the respondents, classifying the goods under T.I. 26AA(iv). The Tribunal supported this classification based on commercial parlance and historical notifications, holding the poles as 'Pipes and Tubes' under T.I. 26AA, exempt from duty.

2. The department appealed, citing a Tribunal judgment in another case that poles have distinct use from pipes and tubes, falling under T.I. 68. The respondents argued for contemporaneous exposition, referencing Notification 41/63 and Notification 52/64. The Tribunal rejected the plea, noting the absence of evidence post-1964 and upheld the previous judgment. The demand for a five-year duty period was questioned, with the Tribunal finding no willful misdeclaration by the respondents, limiting the valid demand to six months.

3. The Tribunal's decision rested on the proper classification of the poles under the Central Excise Tariff, emphasizing commercial understanding and historical notifications. The issue of contemporaneous exposition was debated, but without sufficient evidence post-1964, the Tribunal upheld the initial classification. The demand for duty was limited due to lack of willful misdeclaration by the respondents, concluding the appeal accordingly.