1994 (4) TMI 153 - AT - Central Excise

Summary

Issues:
1. Classification of "Round Rough Shaped Forged Balls" under Central Excise Tariff Act, 1985.
2. Applicability of Tribunal's ruling on classification of grinding balls under Customs Tariff Act, 1975 to the present case under Central Excise Tariff Act, 1985.

Issue 1: Classification of "Round Rough Shaped Forged Balls"
The case involved a revenue appeal against the Collector's classification of "Round Rough Shaped Forged Balls" under Heading 72.08 of the Central Excise Tariff Act, 1985. The revenue contended that the goods should be classified under Heading 73.08, attracting a higher excise duty rate. The Collector held that the product fell under Heading 72.08, specifically covering pieces roughly shaped by rolling or forging of iron and steel. The Tribunal noted that the Central Excise Tariff was different in 1987, and as the product was round rough shaped forged balls manufactured from wire rods by cold forging, it correctly fell under Heading 72.08. The Tribunal rejected the revenue's appeal, affirming the classification under Heading 72.08.

Issue 2: Applicability of Tribunal's ruling on grinding balls classification
The revenue argued that the item in question, used in a grinding mill, should be classified under Heading 84.56 of the Central Excise Tariff Act, 1985, based on a Tribunal ruling regarding grinding steel balls under the Customs Tariff Act, 1975. The respondent accepted that the item was fully finished and used in a grinding mill, similar to the case considered in the previous ruling. However, the respondent contended that the ruling under the Customs Tariff Act, 1975, could not be directly applied to the Central Excise Tariff Act, 1985. After considering both arguments, the Tribunal applied the ratio of the previous ruling, holding that the grinding balls were an integral part of the grinding mill and should be classified under sub-heading 8474.00 of the Central Excise Tariff Act, 1985. The Tribunal emphasized that the item was fully finished and solely used in the grinding mill, aligning with Note 2(b) of Section XVI for classification along with the main item under sub-heading 8474.00. The appeal was disposed of, classifying the items under sub-heading 8474.00 based on the precedent set by the previous ruling.

This comprehensive analysis of the judgment highlights the key issues of classification under the Central Excise Tariff Act, 1985, and the application of previous Tribunal rulings to determine the appropriate classification of goods.