1995 (7) TMI 180 - AT - Central Excise

Summary

Issues:
Classification of bare aluminium strips under Tariff Item 27(b) of the Central Excise Tariff and the applicability of the proviso to Section 11A regarding suppression of facts.

Analysis:
The appeals arose from an order by the Collector (Appeals) concerning the classification of bare aluminium strips under Tariff Item 27(b) of the Central Excise Tariff. M/s. Dak Alloys contended that they were merely shaping aluminium rods into rectangular strips for manufacturing DPC Aluminium Strips, not carrying out manufacturing activities like extrusion or rolling. The department appealed the Collector's decision, alleging suppression as the assessee did not mention bare aluminium strips in their declaration. The Collector confirmed the demand, leading to the appeals.

The main issue was whether the bare aluminium strips constituted goods classifiable under Tariff Item 27(b). M/s. Dak Alloys argued that the product was a flattened wire rod, not a strip, citing precedents and the ISI Glossary of Terms. However, the department relied on a Supreme Court decision involving copper and aluminium strips, asserting that even insulated strips fall within the respective categories. The Tribunal, following the Supreme Court's ruling, held that the bare aluminium strips were classifiable under Tariff Item 27(b) as a manufacture of aluminium.

Regarding the proviso to Section 11A, the department claimed suppression based on the assessee's failure to disclose manufacturing of aluminium strips in their declaration. However, the Tribunal found that the department was aware of the manufacturing process from a letter dated 4-4-1983, negating the suppression allegation. As the department was uncertain about the classification at that time and the final product was declared as DPC Aluminium Strips, the charge of suppression was not established. Consequently, the proviso to Section 11A was deemed inapplicable.

In conclusion, the Tribunal rejected both appeals, affirming the classification of bare aluminium strips under Tariff Item 27(b) and dismissing the invocation of the proviso to Section 11A due to the lack of suppression of facts by the assessee.