1994 (2) TMI 203 - AT - Central Excise

Summary

Issues:
1. Application for seeking stay of the operation of the impugned order of the Collector of Central Excise (Appeals) Bangalore.
2. Classification issue regarding waste and scrap of telecommunication cables.
3. Repeated reclassification of goods under heading 85.44 despite previous orders.
4. Prima facie sustainability of the impugned order of the Collector (Appeals).

Analysis:
1. The application before the Appellate Tribunal sought a stay on the operation of the order issued by the Collector of Central Excise (Appeals) Bangalore. The issue at hand pertained to the classification of waste and scrap of telecommunication cables arising during the manufacture of insulated and laminated cables meant for the Department of Telecommunication, Govt. of India.

2. The petitioner had initially classified the goods under heading 7404.00 for the period 1989 to 1991, contending that the goods were not excisable. However, the Asstt. Collector of Central Excise later classified the goods under Tariff 85.44 of 1985. This decision was challenged and set aside by the Collector of Central Excise (Appeals), Bangalore in 1991, with liberty to reclassify under any other heading. Despite this, the Asstt. Collector reclassified the goods under 85.44 again in 1993, which was confirmed by a different appellate authority.

3. The Tribunal noted that the issue primarily revolved around classification, and there was no duty involved in the appeal. The previous order by the Collector (Appeals) had set aside the reclassification under 85.44, emphasizing that scrap cannot be equated with wires and cables. The Tribunal observed that it would not be permissible for the Asstt. Collector to repeatedly reclassify the goods under the same heading after a final decision had been made on the issue.

4. Based on the above analysis, the Tribunal found that prima facie, the impugned order of the Collector (Appeals) was not sustainable. While refraining from expressing a final opinion on the merits of the issue, the Tribunal granted a stay on the operation of the order pending appeal. It urged the Department to expedite the hearing before the Special Bench, CEGAT, New Delhi, due to the classification issue's potential recurring effects. The appeal papers were subsequently transmitted to the Special Bench for further proceedings.