1997 (10) TMI 200 - AT - Central Excise

Summary

Issues: Classification of swivel assemblies for lifting and loading Ammonia under Customs Tariff; Alternative classification under sub-heading 8431.49; Entitlement to raise alternate classification plea at different stages of appeal.

In the appeal filed by M/s. Southern Petrochemical Industries Corporation Ltd., the issue revolved around the classification of swivel assemblies for lifting and loading Ammonia under the Customs Tariff. Initially claimed under sub-heading 8431.39, Customs reclassified it under 8483.60. Importers sought reclassification under sub-heading 8426.19 and exemption under Notification No. 172/89-Cus. However, it was held that as the goods were parts and not complete machinery, classification under Heading 84.26 was not applicable. The importers later claimed alternative classification under sub-heading 8431.49, which was not entertained by the Collector of Customs (Appeals) as it was not raised at the refund stage.

The issue of alternative classification plea was raised, with the appellants arguing that the Collector of Customs (Appeals) should have considered their alternate ground regarding classification under sub-heading 8431.49. The respondents submitted that as there was no finding on the alternative plea, the matter should be remanded back for consideration. The Tribunal noted that the Supreme Court decision in Shri Rama Machinery Corporation (P) Ltd. v. Collector of Customs allowed for raising alternate classification issues at the Tribunal stage under a different heading.

The Tribunal found that the Collector of Customs (Appeals) should have examined the appellants' plea for alternate classification, which was specifically raised in the grounds of appeal. Therefore, the matter was remanded back to the jurisdictional Commissioner of Customs (Appeals) for re-examination in light of the plea for alternate classification. The importers were to be given an opportunity to present their case in this regard. Consequently, the appeal was disposed of by way of remand, allowing for further review and decision on the classification issue.