1996 (9) TMI 388 - AT - Central Excise

Summary

Issues: Classification of Iron and Steel products as 'Patta/Patti' or 'strip' under Central Excise Tariff

Detailed Analysis:

1. Background and Classification Change: The case involves the classification of Iron and Steel products previously classified as 'Patta/Patti' under T.I. 26AA(ia) and the subsequent dispute with the Revenue classifying them as 'strip' under the revised Tariff, specifically under sub-item No. (8) of T.I. 25 introduced from 1-8-1983. The dispute arises from the change in classification due to the revision in the Iron and Steel Tariff.

2. Procedural Aspect: The matter was scheduled for a hearing, but the notice was returned undelivered. Despite the non-receipt of the notice by the appellants, the Tribunal proceeded to hear the case based on the previous attempts to notify the parties. The Respondent/Revenue argued that the goods in question were rightly classifiable as 'strips.'

3. Appellants' Contentions: The appellants contended that their products, recognized as Stainless Steel Pattas, were incapable of being manufactured as sheets or strips. They argued that strips could only be produced in a 'Strip Mill,' which they did not possess, as they were engaged solely in cold rolling. They referenced a Tariff Advice from the Ministry to support their classification under T.I. 25(8) of the Tariff.

4. Ministry's Clarification: The Ministry's clarification, dated 29-3-1985, defined the characteristics of strips, emphasizing that a product would be classified as a strip based on specific dimensional measurements and shapes. The clarification differentiated between 'Patta/Patti' and 'strips,' indicating that the former could fall under the category of strips if they met the dimensional specifications outlined in the Tariff.

5. Tribunal's Precedents: The Tribunal referred to previous decisions, including Collector of Central Excise v. Narayani Udyog Ltd. and Collector v. Sanchoti Synthetics (P) Ltd., which established the classification of Pattas/Pattis under different Tariff items based on the period of classification. These precedents supported the appellants' argument regarding the classification of their products.

6. Decision and Conclusion: After considering all aspects, the Tribunal concluded that the Collector of Central Excise (Appeals) had incorrectly classified the products as strips. The Tribunal ruled in favor of the appellants, accepting their appeal based on the arguments presented and the applicable legal interpretations and precedents.

7. Final Order: The Tribunal accepted the appeal and ordered accordingly, overturning the classification of the Iron and Steel products as 'strips' and affirming the classification as 'Patta/Patti' under the Central Excise Tariff.