1996 (9) TMI 265 - AT - Central Excise

Summary

Issues involved: Classification of "Inserts" used as raw materials for Concrete Sleepers for Indian Railways under new Tariff post-1-3-1986.

Summary:
The appeal pertains to the classification of "Inserts" used in Concrete Sleepers for Indian Railways. Before 1-3-1986, the Inserts were classified under Tariff Item 25(16)(i) and eligible for exemption under Notification No. 208/83-C.E. Post the new Tariff, the Department sought to classify them under sub-heading No. 7302.90, while the assessee argued for sub-heading No. 7307.10.

The Tribunal proceeded with the matter in the absence of the appellants after hearing the Respondent/Revenue representative. The Inserts, produced from Iron Scrap through various processes, are used as inputs in Concrete Sleepers, providing strength to them.

The key consideration was whether the processes applied to the Inserts post-moulding would classify them as "Railway or tramway track construction material" under Heading No. 73.02. The Tribunal concluded that the Inserts did not fall under the specified materials in Heading No. 73.02.

Referring to a Supreme Court case, it was noted that precision machining was crucial for classification. Since there was no evidence of precision machining in this case, only the duty under Heading No. 73.07 was deemed chargeable, which had already been paid by the appellants.

The Tribunal's decision in the case of Shivaji Works Ltd. and a Board's Circular further supported the appellants' case. Consequently, the order of the Collector of Central Excise & Customs, Vadodara was set aside, and the appeal of the appellants was accepted.