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1996 (5) TMI 234 - AT - Central Excise
Issues: Classification of goods under Tariff Item, Benefit of Notification No. 74/62, Imposition of penalty
In this case, the Appellate Tribunal CEGAT, New Delhi, heard an appeal from the Revenue against the order of the Collector of Central Excise (Appeals) New Delhi. The dispute arose when M/s. Prajapati Metal Works manufactured stainless steel castings without holding a Central Excise license and without following prescribed procedures. The Jurisdictional Assistant Collector classified the goods under Tariff Item 26AA(V), denied the benefit of Notification No. 74/62, and imposed a demand and penalty on M/s. Prajapati Metal Works. The Collector, in the order-in-appeal, classified the goods under Tariff Item 25, allowed the benefit of the Notification, and set aside the penalty. The Revenue appealed this decision, arguing that the goods should be classified under Tariff Item 26AA(V) and not under Tariff Item 25. Upon review, the Tribunal noted that Tariff Item 25 covered iron, while Tariff Item 26 covered steel. The goods in question were stainless steel castings made from stainless steel scrap, clearly falling under steel. Therefore, the Tribunal found that the goods could not be classified under Tariff Item 25 but should be classified under Tariff Item 26AA(V). The Tribunal also observed that the Collector had not addressed all issues raised by the appellants, including the time bar and use of power in manufacturing. As a result, the Tribunal set aside the Collector's order and remanded the case for further proceedings to determine only the time bar aspect. The Tribunal's decision highlights the importance of correct classification under the tariff items, emphasizing that the goods in question, being stainless steel castings, should be classified under Tariff Item 26AA(V) covering steel products. Additionally, the Tribunal's ruling underscores the need for a comprehensive examination of all issues raised by the parties to ensure a fair and thorough adjudication process.
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