1995 (2) TMI 205 - AT - Central Excise

Summary

Issues:
1. Classification of `micrometers' under Central Excise Tariff and eligibility for exemption under Notification No. 55/75-C.E., dated 1-3-1975.

Detailed Analysis:
The appeal was against an order by the Collector of Central Excise (Appeals), Bombay, regarding the classification of `micrometers' under the Central Excise Tariff and their eligibility for exemption under Notification No. 55/75-C.E., dated 1-3-1975. The appellants claimed that `micrometers' fell under the category of `mathematical instruments' and should be exempt from duty. The Assistant Collector rejected this claim, classifying `micrometers' under Tariff Item 68 but denying them exemption. The Collector (Appeals) upheld this decision, stating that `micrometers' were not mathematical instruments and were not classifiable under Tariff Item 68.

The appellants argued that `micrometers' should be considered mathematical instruments based on vernier scale accuracy and trade parlance. They contended that the lower authorities did not consider relevant evidence, including the opinion of a management consultant and notes from the Brussels Trade Nomenclature. On the other hand, the respondent argued that `micrometers' were precision measuring instruments, correctly classified under Tariff Item 68 and not eligible for exemption under the notification.

The Tribunal examined the case records and submissions from both sides. The central issue was whether `micrometers' could be classified as `mathematical instruments' under Tariff Item 68 for exemption under the notification. The appellants relied on an opinion from a management consultant and trade notes, but the Tribunal found these sources irrelevant for determining exemption eligibility. The Tribunal also cited dictionary definitions to establish that `micrometers' were not mathematical instruments but precision measuring tools, thus classifiable under Tariff Item 68.

Consequently, the Tribunal held that `micrometers' were precision measuring instruments classifiable under Tariff Item 68. However, due to the lack of evidence supporting their classification as mathematical instruments, the Tribunal concluded that they were not eligible for exemption under Notification No. 55/75-C.E., dated 1-3-1975. Therefore, the appeal was rejected.