1997 (12) TMI 214 - AT - Central Excise

Summary

Issues: Classification of goods under Heading 7308 as parts of structures versus Heading 7216 for angles, shapes, and sections of iron or non-alloy steel.

Detailed Analysis:

1. Background: The appeals arose from a common order regarding the classification of goods manufactured by the assessee under sub-heading 7216.20. The Assistant Collector classified the goods as parts of structures under Heading 7308, which was upheld by the Collector (Appeals), leading to the present appeal.

2. Appellant's Argument: The appellant's advocate argued that the goods were previously classified under different Tariff Item Nos. and referenced previous Tribunal judgments supporting the classification of similar goods under Heading 72.16 instead of Heading 73.08. The advocate emphasized that the goods did not undergo further processes to be considered parts of structures, as clarified by a Board circular.

3. Respondent's Argument: The respondent referred to the General Manager's statement claiming that the goods were used in general construction and engineering industries, supporting the classification under Heading 7308 for a more specific description of the goods. The respondent dismissed the relevance of previous Tribunal judgments due to changes in the tariff structure.

4. Tribunal's Analysis: The Tribunal examined the rival submissions, previous judgments, and tariff entries. It highlighted that the end-use alone does not determine classification unless specified in the Tariff. The Tribunal referenced a previous judgment emphasizing that the end use is significant for classification under Heading 7308, which pertains to parts of structures.

5. Classification Criteria: Both Headings 7216 and 7308 cover "angles, shapes, and sections," but Heading 7308 includes a qualifier "prepared for use in structures." The Tribunal discussed whether this qualifier only applies to products initially classified under Heading 72.16 and further worked upon or if it includes products manufactured specifically for use in structures.

6. Interpretation of Sub-heading Notes: The Tribunal analyzed the sub-notes under sub-heading 7308 in the Harmonized System of Nomenclature (HSN) to determine that the entry covers goods initially classified under Heading 72 and further processed, not goods manufactured with the end use in mind. The Tribunal clarified that specific processes must be undertaken on the goods for inclusion under Heading 7308.

7. Decision: After reviewing the tariff entry, sub-marginal notes, and discussions, the Tribunal concluded that the Collector erred in classifying the products under Heading 7308. The correct classification was deemed to be under Heading 7216, as claimed by the assessees. Consequently, the Tribunal allowed the appeal and set aside the Collector's order.