1998 (3) TMI 390 - AT - Central Excise

Summary

Issues:
- Eligibility for concessional rate of duty under Notification No. 178/88 for brass sheets and circles of specific thickness under Chapter sub-heading 7409.20.
- Interpretation of relevant notifications and classification of products for duty rate determination.

Analysis:
1. The Department filed an appeal against the Collector of Central Excise (Appeals) Tiruchirapalli's order regarding the eligibility for the concessional rate of duty under Notification No. 178/88 for brass sheets and circles of specific thickness. The appellants, manufacturers of brass sheets and circles, contested the modification made by the Assistant Collector, arguing that they satisfied all conditions of Notification No. 178/88 and were eligible for the concessional rate prescribed under it.

2. The Collector (Appeals) differentiated between Notification No. 178/88 and Notification No. 67/89, stating that the latter applied to assesses not meeting the conditions of the former. The appellants had classified their products under sub-heading 7409.20 at the concessional duty rate of Rs. 1,260 under Notification No. 178/88. The Department argued that the concessional rate was specifically for "copper sheets and circles" and not for brass sheets and circles, citing Notification No. 96/88 for brass sheets and circles.

3. The respondents contended that the modification made by the Assistant Collector without issuing a show cause notice was incorrect, citing the Karnataka High Court decision. They argued that since they used duty-paid inputs as per Notification No. 178/88, they were eligible for the concessional rate. They also highlighted the description of goods in the notifications and relied on legal interpretations to support their classification under Notification No. 178/88.

4. The Tribunal considered the submissions and relevant legal provisions. It noted that brass, being an alloy of copper, falls under the purview of copper and its alloys. The Tribunal emphasized the importance of interpreting notifications in harmony and in favor of the assessee when multiple notifications are concurrently in force. It concluded that the goods described in Notification No. 178/88 covered brass sheets and circles and dismissed the Departmental Appeal.

5. The Vice President, concurring with the decision, elaborated on the distinction between copper and brass in trade practice versus legal definitions. He emphasized the importance of considering chapter notes and descriptions in interpreting notifications that refer to specific tariff headings. The Vice President highlighted the need to apply notifications in line with the legal concepts and definitions incorporated in the law.

In conclusion, the Tribunal upheld the eligibility of the appellants for the concessional rate of duty under Notification No. 178/88 for brass sheets and circles falling under specific sub-headings, emphasizing the legal interpretation and application of relevant notifications and tariff headings.