1990 (11) TMI 250 - AT - Central Excise

Summary

Issues:
Delay in filing Supplementary Appeals; Interpretation of Notification No. 119/75-CE; Classification of stranded wires under Tariff Item 68; Whether stranding of wires amounts to manufacture.

Delay in filing Supplementary Appeals:
The appellants filed a C.O.D. application for condoning the delay in filing Supplementary Appeals, which was later condoned by the Tribunal. The delay was related to three Appeal petitions disposed of by the Collector (Appeals) in a common order.

Interpretation of Notification No. 119/75-CE:
The case involved M/s. Bombay Wire Ropes Ltd. manufacturing Wire "Strands" under Tariff Item 68 and clearing them based on duty payment as per Notification No. 119/75-CE. The issue arose when duty demands were raised due to the non-declaration of availing the notification's benefit in the Classification List. Penalties were imposed, and the dispute centered on whether the appellants were entitled to the exemption under the notification.

Classification of stranded wires under Tariff Item 68:
The Collector (Appeals) held that the mere cutting and twisting of wires cannot be considered as manufacturing, setting aside the Assistant Collector's order. The Revenue appealed, arguing that the Collector (Appeals) based findings on different grounds from the Assistant Collector's decision, which denied the appellants the benefit of the notification.

Whether stranding of wires amounts to manufacture:
The Ld. Consultant cited legal precedents to argue that stranding of wires does not amount to manufacture, relying on the Supreme Court's decision in a similar case. The Tribunal clarified that the Supreme Court's decision upheld that stranded wires remain wires falling under a specific Tariff Item, emphasizing that the Collector (Appeals) did not discuss the points of reference and issued the order on different premises.

The Tribunal noted that the Supreme Court's decision in a related case confirmed that stranded wires are classified under a specific Tariff Item and not as manufactured goods under a different category. The Tribunal emphasized that past assessments under Tariff Item 68 could not be reopened based on subsequent decisions. Despite penalties imposed for non-compliance, the Tribunal ruled that the appellants were entitled to the exemption under Notification No. 119/75-CE, as they were engaged in job work of stranding wires, and the demands for duty were not payable.

In conclusion, the Tribunal partially allowed the Revenue's appeal, modifying the decision to reflect that the demands for duty were not payable under the Notification No. 119/75-CE.