1995 (1) TMI 148 - AT - Central Excise

Summary

Issues: Classification of goods under Central Excise Tariff Act, 1985; Financial hardship claimed by the appellants; Stay of recovery of Central Excise duty.

The case involved M/s. P.C. Metal Industries appealing against the order passed by the Collector of Central Excise (Appeals), New Delhi, regarding the classification of goods under the Central Excise Tariff Act, 1985. The appellants manufactured Choke covers and disputed the department's classification of these goods as parts of electrical lighting fittings under sub-heading No. 9405.00 of the Tariff. They argued for classification under sub-heading No. 7326.90 as other articles of iron or steel, claiming that the goods were part of fluorescent tube chokes falling under sub-heading No. 8504.00 of the Tariff. The appellants also cited financial hardship. On the other hand, the respondent contended that the Choke covers were indeed part of electric lighting fittings and correctly classified under sub-heading No. 9405.00. The Tribunal analyzed the Tariff entries and relevant notifications to determine the correct classification. It noted that chokes for fluorescent tubes were classified under Heading 8504.00 as electrical transformers, static converters, and inductors. The Tribunal referenced the old Tariff and a previous case to understand the classification of electric lighting fittings, emphasizing the inclusion of chokes and starters for fluorescent tubes in that category.

Regarding the stay application for the recovery of Central Excise duty amounting to Rs. 43,200, the Tribunal refrained from making detailed observations on the merits of the case. However, based on prima facie analysis, the Tribunal found that the choke covers were likely classifiable under sub-heading 8504.00 of the Tariff. Considering the appellants' claim of financial hardship and all relevant factors, the Tribunal decided to dispense with the pre-deposit of duty and stay the recovery until the appeal's disposal. The decision was made in the interest of justice, acknowledging the financial circumstances of the appellants and the classification issue at hand.