1997 (6) TMI 221 - AT - Central Excise

Summary

Issues:
Classification of steel grinding balls under Central Excise Tariff - Applicability of Tariff Heading 7308.90 vs. Heading 7208 - Misdeclaration of goods in classification list - Liability for duty payment.

Analysis:
The appellant appealed against an order classifying steel grinding balls under Tariff Heading 7308.90 by the Collector of Central Excise. The appellant was accused of not filing a classification list for approval, leading to misdeclaration of the product as "forged steel grinding media" instead of the accurate description "forged steel grinding media ball." This misdeclaration resulted in the clearance of goods without duty payment.

The appellant contended that the goods were pieces roughly shaped by forging and should be classified under Heading 72.08, citing a Tribunal decision supporting this classification. However, the Revenue argued for classification under Heading 7308.90. The Tribunal noted that the forged steel grinding balls were fully finished products at the time of clearance, with no further processing by the appellant or the consignee.

The Tribunal distinguished a Supreme Court decision involving TISCO, where finished goods emerged only after precision machining by the railways. In contrast, the steel grinding balls in this case were complete items before clearance, making the TISCO judgment inapplicable. The Tribunal found the steel grinding balls to be classifiable under sub-heading 7308.90, encompassing other articles of iron and steel not specified elsewhere.

The manufacturing process of the steel grinding balls indicated that they were finished articles of steel used directly in cement factories without additional processing, supporting their classification under sub-heading 7308.90. The Tribunal agreed that the appellant had not fully described the goods in the classification list, leading to the dismissal of the appeal and upholding of the classification under Tariff Heading 7308.90.