1994 (6) TMI 102 - AT - Central Excise

Summary

Issues: Classification of goods under Tariff Heading 8544.00, retrospective application of classification change, waiver of pre-deposit of duty

Classification of goods under Tariff Heading 8544.00:
The case involved a dispute regarding the classification of push-in-cords manufactured by the appellants for use as a connection of wire between the telephone receiver and the main electric connection for the telephone. The goods were initially assessed under Tariff Item 68 but were proposed to be classified as electric wires and cables under Tariff Heading 8544.00 by the department. The Collector (Appeals) upheld the classification under Tariff Heading 8517, but later revised the classification to Tariff Heading 8544.00. The appellant argued that any change in classification should take effect prospectively, not retrospectively.

Retrospective application of classification change:
The appellant contended that the change in classification on 18-6-1992 should not affect the duty demand for periods before that date. The appellant argued that the demand for duty for periods before the classification change should not be sustainable. The Tribunal agreed with the appellant's argument, stating that while the department can change the classification, such changes should take place prospectively. The Tribunal allowed the stay petition unconditionally and directed the case to be heard out of turn.

Waiver of pre-deposit of duty:
The appellant sought a waiver of pre-deposit of duty amounting to Rs. 3,09,855.92 and Rs. 6,75,820/- demanded for specific periods. The appellant's advocate argued for the unconditional allowance of the stay petition without any prior deposit, citing the settled principle of law that any change in classification should not act retrospectively. The Tribunal, after considering the arguments from both sides, agreed with the appellant and allowed the stay petition unconditionally, directing the case to be heard promptly.

In conclusion, the judgment primarily addressed the classification of goods under Tariff Heading 8544.00, the retrospective application of classification changes, and the waiver of pre-deposit of duty. The Tribunal ruled in favor of the appellant, emphasizing that classification changes should take effect prospectively and allowed the stay petition without any prior deposit.