1997 (3) TMI 237 - AT - Central Excise

Issues Involved
1. Classification of plugs and sockets manufactured from unwrought zinc alloy ingots.
2. Eligibility for exemption under Notification No. 180/84-C.E., dated 1-8-1984.

Detailed Analysis

1. Classification of Plugs and Sockets Manufactured from Unwrought Zinc Alloy Ingots

The primary issue is the classification of plugs and sockets manufactured from unwrought zinc alloy ingots. The Assistant Collector of Central Excise, Ahmedabad, classified these products under Item No. 68 of the erstwhile Central Excise Tariff. However, the Collector of Central Excise (Appeals) classified them under Item No. 26B(i) of the Tariff, which includes "unwrought zinc in any form including blocks, plates, ingots, cakes, bars, billets, hard or soft slabs, cathodes, anodes, pellets, spelter and broken zinc."

The Revenue argued that the goods in question were articles of zinc but not unwrought zinc, and thus should be classified under Item No. 68. They supported their argument by citing the Tribunal's decisions in the cases of Devidayal Agro Metal Industries v. CC, Bombay and Chloride India Ltd. v. Collector of Central Excise, where it was held that certain products were correctly classifiable under Item No. 68.

In contrast, the respondents contended that the plugs and sockets were not wrought products and were covered by the expression "Unwrought Zinc," as no further work had been done on them after casting. They cited the Tribunal's decision in the case of Collector of Central Excise v. Metal & Ores Co., where it was held that zinc sheets and plates were classifiable under Item No. 26B.

The Tribunal noted that unwrought zinc is the metal in its different degrees of purity, whether in blocks, plates, ingots, cakes, bars, billets, hard or soft slabs, cathodes, anodes, pellets, spelter, or broken zinc. The plugs and sockets, being pressure die cast components, were not unwrought zinc but shaped articles cast from unwrought zinc. Hence, they did not fall under the definition of unwrought zinc.

2. Eligibility for Exemption under Notification No. 180/84-C.E., Dated 1-8-1984

The second issue is whether the plugs and sockets are eligible for exemption under Notification No. 180/84-C.E., dated 1-8-1984, which applies to unwrought zinc. The Tribunal examined the definition of unwrought zinc and concluded that the plugs and sockets, being identifiable products and not unwrought zinc, were not eligible for this exemption.

The Tribunal further explained that the Central Excise Tariff for non-ferrous metals was revised in the 1984 Budget to align with the Customs Tariff, which is based on the Customs Co-operation Council Nomenclature (CCCN). Under the CCCN, unwrought zinc is classified under Heading No. 79.01, which includes zinc in its primary forms but not shaped articles.

The Tribunal also noted that prior to 28-2-1986, there was no sub-item in Item No. 26B corresponding to Heading No. 79.06 of the CCCN to cover other articles of zinc. Therefore, the plugs and sockets, not being specified under any sub-item of Item No. 26B, were correctly classifiable under Item No. 68.

Conclusion

The Tribunal concluded that the plugs and sockets manufactured by the respondents were correctly classifiable under Item No. 68 of the erstwhile Central Excise Tariff. Consequently, they were not eligible for exemption under Notification No. 180/84-C.E., dated 1-8-1984. The impugned order-in-appeal passed by the Collector of Central Excise (Appeals), Bombay, was set aside, and the appeal filed by the Revenue was allowed.

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