1996 (10) TMI 278 - AT - Central Excise

Summary

Issues: Classification of product 'Rivets' under the Central Excise Tariff.

The judgment pertains to an appeal filed by M/s. Sundaram Fasteners Ltd. challenging the Order-in-Appeal passed by the Collector of Central Excise (Appeals), Madras regarding the classification of the product 'Rivets.' The appellant argued that the goods should be classified under Tariff Item 25(8) of the Central Excise Tariff, contending that they were forged products. The appellant relied on previous Tribunal decisions, including the case of Sikha Heat Treatment Centre v. CCE, New Delhi and Jaypee Forges v. CCE, Bombay. Conversely, the respondent contended that the matter was covered by the Tribunal's decision in the case of CCE v. Eastern Industries. The Asstt. Collector had classified the Steel Rivets under Tariff Item 68, a decision upheld by the Collector of Central Excise (Appeals), Madras.

The Tribunal analyzed the nature of Rivets, considering them as metal bolts with a head at one end, hammered into a head after insertion, and generally sold by hardware dealers. The Tribunal referenced the decision in the case of CCE v. Eastern Industries, emphasizing the manufacturing process of rivets involving cutting the rod, die-forging to form the head, and finning the other end. The Tribunal clarified that rivets, being distinctly known products with specific names, did not fall under the category of 'forged shaped not otherwise specified' but were properly classifiable under Tariff Item 68.

The Tribunal also considered the Central Board of Excise & Customs' letter dated 25-4-1979, which supported the classification of rivets under Tariff Item 68 due to their specific name and known product status. The appellant argued that their rivets underwent no further processing after forging, citing a Board clarification that rivets manufactured by forging would be classified under Tariff Item 26AA(ia) only if no further processes were employed. However, the Tribunal found that the Steel Rivets manufactured by the appellant were ready for use as finished products and fell under Tariff Item 68, in line with the decision in the case of Eastern Industries.

After considering all relevant aspects and following the Tribunal's precedent, the appeal was rejected, affirming the lower authorities' classification of Steel Rivets under Tariff Item 68.