1995 (11) TMI 188 - AT - Central Excise

Summary

Issues:
Classification of pellets under Tariff Item 51A(iii) of the Central Excise Tariff.

Analysis:
The case involves a Revenue appeal against an order passed by the Collector (Appeals), Madras, concerning the classification of pellets under Tariff Item 51A(iii) of the Central Excise Tariff. The Collector (Appeals) held that pellets do not fall under Tariff Item 51A(iii) unless they are fitted into hard steel casings. The Revenue contended that pellets themselves are dies and should be classified under Tariff Item 51A(iii). The appellants argued that pellets are components of tools and not tools themselves, thus should not be classified under Tariff Item 51A(iii).

The Revenue argued that pellets are the main functional items and should be classified as tools under Tariff Item 51A(iii). They emphasized that pellets are essential components of dies and are used in wiredrawing and metal extrusion processes. The appellants, on the other hand, contended that pellets are not independently usable as tools and are known only as pellets or dies, not as tools for wiredrawing. They also challenged the jurisdiction of the Range Superintendent to issue a notice proposing to revise the classification list approved by the Assistant Collector.

After hearing arguments from both sides, the Tribunal considered the definition of pellets as per British and International Standard Institutions. The Tribunal noted that Tariff Item 51A(iii) is meant for complete tools designed to be fitted into hand tools, machine tools, or other specified tools. The Tribunal agreed with the Collector (Appeals) that pellets are components of dies and not complete tools by themselves. The Tribunal also highlighted the necessity of shank fitting in hard steel casings for pellets to function as dies, supporting the Collector (Appeals)'s findings.

In conclusion, the Tribunal rejected the Revenue's appeal, affirming the Collector (Appeals)'s decision that pellets are components and not complete tools under Tariff Item 51A(iii). The Tribunal relied on technical understanding and trade parlance to support this classification, emphasizing that pellets require shank fitting to become functional as dies. The Tribunal found no merit in the Revenue's arguments and upheld the classification of pellets as per the Collector (Appeals)'s order and the Government of India's judgment in a related case.