1998 (6) TMI 159 - AT - Central Excise

Summary

Issues:
Classification of goods under Chapter Heading 4016.19 or 8607.00.

Detailed Analysis:
1. Issue of Classification: The main question in this appeal was whether the goods manufactured by the Appellants should be classified under Chapter Heading 4016.19 or Chapter Heading 8607.00. Initially, the Appellants classified the items under Heading 4016.19 but later changed it to 8607.00 at the instance of the Range Supdt. However, they revised the classification back to 4016.19 with effect from 1-4-1992. The Assistant Collector adjudicated in favor of the Appellants, but the Collector (Appeals) reversed this decision.

2. Arguments for Appellants: The Appellants argued that the goods should be classified under Heading 4016.19 as they are manufacturers of vulcanized rubber products used in Railways. The Assistant Collector had held that the goods were identifiable under Heading 4016.19 based on the exclusion clauses in the Central Excise Tariff Act. He concluded that the goods were not covered under Chapter Heading 86.07 and should be classified under 4016.19.

3. Arguments for Department: The Department contended that the goods are identifiable as parts of railway or tramway locomotives under Chapter 86.07. They referred to the Explanatory Notes under Section XVII, stating that the goods should comply with certain conditions to be classified under Chapter 86.07.

4. Judgment and Analysis: The Tribunal considered all submissions and examined the classification list filed by the Appellants. The Collector (Appeals) had observed that the goods did not satisfy the conditions under the Explanatory Note for Chapter 86.07. The goods were known by a distinctive name and character, exclusively used as parts of goods falling under Chapter Heading 86.07. The Tribunal noted previous classifications of similar items under different headings and relied on Trade Circulars and Tribunal decisions supporting the Appellants' contentions.

5. Decision: After considering all relevant factors, the Tribunal agreed with the Appellants that the goods should be classified under Chapter Heading 4016.19, as held by the Assistant Collector, and not under 8607.00 as determined by the Collector (Appeals). Consequently, the Appeal was allowed, and the impugned order was set aside.