1991 (2) TMI 261 - AT - Central Excise

Summary

Issues: Classification of laminated jute bags under Tariff Item 22A or 68, rectification of mistakes apparent from the record, applicability of exemption Notification No. 53/65.

Classification of Laminated Jute Bags:
The dispute revolved around the classification of laminated jute bags under Tariff Item (T.I.) 22A or T.I. 68. The Tribunal upheld the classification under T.I. 68 based on the decision of the Calcutta High Court in a previous case. The appellants argued that the Tribunal misunderstood the amendments to T.I. 22A in 1972 and 1977, leading to an incorrect classification. They contended that the judgment of the Andhra Pradesh High Court in a different case was more relevant to the present dispute, as it considered the changes in the tariff entry that occurred during the relevant period. The Tribunal's reliance on the Calcutta High Court judgment was deemed a mistake, and the Andhra Pradesh High Court judgment was considered more appropriate to the facts of the case.

Rectification of Mistakes Apparent from the Record:
The appellants sought rectification of mistakes apparent from the Tribunal's order. The Tribunal acknowledged that a mistake must be evident on the face of the record to be rectified, without requiring extensive reasoning. While the power of review is not inherent, the Tribunal considered whether the reliance on the Calcutta High Court judgment, in light of the Andhra Pradesh High Court judgment, constituted a mistake apparent from the record. The Tribunal concluded that the Andhra Pradesh High Court judgment, which was available before the decision was made, rendered the previous classification a mistake, justifying rectification.

Applicability of Exemption Notification No. 53/65:
The appellants also raised a ground regarding the applicability of exemption Notification No. 53/65. The Tribunal found that in light of the correct classification under T.I. 22A, the laminated jute bags were entitled to the benefit of this notification, granting exemption from duty in excess of that payable on processed jute manufactures used in their production. Consequently, the appellants were granted relief based on the correct classification and the applicable exemption notification.

In conclusion, the judgment addressed the issues of classification of laminated jute bags, rectification of mistakes apparent from the record, and the applicability of exemption Notification No. 53/65. The Tribunal rectified the classification error based on the relevant Andhra Pradesh High Court judgment and granted relief to the appellants in accordance with the correct classification under Tariff Item 22A and the applicable exemption notification.