1990 (12) TMI 198 - AT - Central Excise

Summary

Issues:
1. Classification of P.F. moulding powder and P.F. resin under Tariff item 15A(1).
2. Challenge of the classification list by the assessee.
3. Duty assessment on P.F. Moulding powder.
4. Appeal against the Assistant Collector's decision.
5. Interpretation of Government circulars and orders.
6. Revenue's appeal against the Collector's order.
7. Condonation of delay in filing the supplementary appeal.
8. Application of CEGAT rulings in similar cases.

Detailed Analysis:

1. The case involved the classification of P.F. moulding powder and P.F. resin under Tariff item 15A(1) of the Central Excises and Salt Act, 1944. The assessee initially filed a classification list approved by the proper officer, but later filed a fresh list claiming that P.F. Moulding powder is not dutiable as it is manufactured from P.F. resins. The dispute arose regarding the assessment of duty on P.F. Moulding powder.

2. The assessee challenged the approved classification list, citing Ministry of Finance instructions and requested the Assistant Collector to pass an appealable order after a personal hearing. However, the Assistant Collector directed the assessee to pay duty as per the remarks in the revised classification list.

3. The Collector, on appeal, held that the process of making phenolic moulding powder should be assessed at a concessional rate prescribed for phenolic resin. The Collector relied on various Government circulars and orders, including a ruling by CEGAT in a similar case.

4. The Revenue filed an appeal against the Collector's order, mainly concerning the wrong utilization of credit by the assessee. The Revenue also sought condonation of delay in filing the supplementary appeal. However, the Revenue did not challenge the Collector's reasoning regarding the dutiability of P.F. Moulding powder.

5. The Tribunal noted that the Revenue had accepted the Collector's order on one issue and did not provide grounds to challenge the applicability of CEGAT rulings in the case. The Tribunal observed that the matter was settled by previous rulings, indicating that P.F. Moulding powder manufactured from duty paid resin is not dutiable.

6. Based on the settled legal position and previous rulings, the Tribunal dismissed the appeal, stating that the process of preparing P.F. Moulding powder does not constitute a new product emerging from the addition of fillers/additives, hence not subject to duty. The Tribunal emphasized that captive consumption of duty paid P.F. resin in manufacturing P.F. Moulding powder does not render it dutiable for a second time.