1998 (5) TMI 175 - AT - Central Excise

Summary

Issues:
Classification of forgings manufactured by the process of drop hammer under Chapter sub-heading 7308.00 or 7208.00.

Analysis:
The appeal was filed by the Revenue against the order of the Collector of Central Excise regarding the classification of forgings manufactured by the process of drop hammer. The primary issue was whether these forgings should be classified under Chapter sub-heading 7308.00 (structures of iron and steel) or under Chapter sub-heading 7208.00 (flat-rolled products of iron or non-alloy steel).

When the matter was called, no one was present for the respondents, so the Departmental Representative proceeded with the hearing. The facts leading to the appeal were narrated by the Departmental Representative. The respondents had initially classified their forgings under sub-headings 7208.00 and 7413.00 in their classification list. The Department issued a Show Cause Notice (SCN) asking for justification on the classification of steel forged products. The Assistant Collector initially modified the classification under Chapter sub-heading 7308.00, but this decision was set aside by the Collector (Appeals) for further investigation. Subsequently, the steel forgings were again classified under 7308.00 by the Assistant Collector, leading to the appeal by the respondents, which was allowed by the Collector (Appeals), classifying the items under dispute under sub-heading 7208.00.

The Department contended that the forgings should be classified under sub-heading 7308.00 based on a Departmental Circular and a Tribunal decision. However, the respondents argued that the forgings did not bear the essential characteristics of final machine parts and should be classified under sub-heading 7208.00. The respondents also raised concerns about the Assistant Collector's order being arbitrary and without proper consideration.

The impugned order by the Collector (Appeals) relied on a Board Circular and previous court decisions to classify the forgings under sub-heading 7208.00. The Department's appeal referenced a Tribunal decision but was unable to convince the Tribunal due to the Board's Circular clarifying the classification of forgings under sub-heading 7208.00.

In conclusion, the Tribunal upheld the Collector (Appeals) order, confirming the classification of the forged products under sub-heading 7208.00 and rejecting the Department's appeal as unsubstantiated. The cross-objection filed by the respondents was also disposed of in line with the Tribunal's decision.