1995 (1) TMI 140 - AT - Central Excise

Summary

Issues: Classification of casting bars and eligibility under Notification 67/89-C.E.

In this case, the appellant claimed the classification of the casting bars under Heading 7407.11 of the Central Excise Tariff and sought the benefit of Notification 67/89-C.E. The Assistant Collector disagreed with this classification and proposed a different one under Heading 7419.91, stating that the bars did not meet the criteria for being considered as refined copper as per the definitions in Chapter 74. The Collector of Central Excise (Appeals) upheld the Assistant Collector's classification decision. The appellant, however, argued for a classification under Heading 7403.19. The department's Cross-objection was dismissed due to being time-barred, but the argument presented therein was adopted by the department representative. The main contention was that the copper content in the bars exceeded 99%, indicating they should be classified as refined cast copper bars under Heading 74.03 and be eligible for the benefits under Notification 67/89-C.E.

The definition of refined copper as per Note 1(a) to Chapter 74 requires the metal to contain at least 97.5% copper by weight, with limits on other elements' content. The appellant's claim that the bars contained 99.1% copper was noted, but it was emphasized that the content of other elements must also be within specified limits to qualify as refined copper. If the bars do not meet this definition, they would be considered copper alloys under Note 1(b), leading to classification under Headings 7403.21 to 7403.29 based on the specific alloy composition. Since the composition of the remaining 1% was unclear, it was deemed necessary to determine whether the bars were made of refined copper or copper alloys through testing. The classification would depend on this determination, with unwrought bars falling under Heading 7403.19 if made of refined copper, as per HSN Explanatory Notes.

The Tribunal allowed the appeal by remanding the case back to the Collector of Central Excise for a reevaluation of the classification and eligibility under Notification 67/89-C.E. The Collector was directed to conduct testing to determine the composition of the bars and make a decision in accordance with the principles of natural justice. This decision would hinge on whether the bars met the criteria for refined copper as defined in the tariff, impacting their classification and eligibility for the notification benefits.