1999 (4) TMI 174 - AT - Central Excise

Summary

Issues: Classification of manufactured products under Central Excise Tariff - Sub-heading No. 7212.10 or 7308.90

Issue 1: Classification of Products
The case involved determining the classification of various products manufactured by M/s. Controlled Acoustic Industries Pvt. Ltd. The products included T coupler, L.T. coupler, furring channels, leaf spacer clip, stabilizer, bar, hold-on-hangers, stud, perimeter, angle, ceiling hanger, T leveller, steel clip, ranner, and rotating clip. The main issue was whether these products should be classified under sub-heading No. 7212.10 or sub-heading No. 7308.90 of the Central Excise Tariff applicable during the year 1987.

Analysis:
The Asstt. Collector of Central Excise initially classified the products under sub-heading No. 7212.10, which covers galvanized sheets, plates, and forms. The Collector of Central Excise (Appeals) later classified the products under sub-heading No. 7308.90. The dispute primarily revolved around the classification of the products, not the process of manufacture. The adjudicating authority held that there was a process of manufacture involved, resulting in new products. The appellants did not challenge this classification order, where it was determined that the goods were excisable and dutiable.

Issue 2: Classification of Furring Channels
Regarding the furring channels, the tribunal analyzed the nature of these products. The tariff description under sub-heading No. 72.12 includes coils for re-rolling, sheets, plates, and forms of iron or steel. The tribunal referred to the McGraw Hill Dictionary to define "furring" as strips of wood or metal used to provide a level surface in construction. Based on this analysis, the tribunal concluded that classifying furring channels under sub-heading No. 7212.10 was appropriate.

Issue 3: Classification of Other Products
For the remaining products, excluding furring channels, the tribunal found that they had assumed a different name, character, and use compared to the galvanized sheets from which they were manufactured. These products were considered articles of iron and steel, falling under Chapter 73 of the Tariff. The tribunal agreed with the Collector of Central Excise (Appeals) that these products should be classified under sub-heading No. 7308.90 of the Central Excise Tariff.

Conclusion:
The tribunal allowed the appeal regarding the classification of furring channels under sub-heading No. 7212.10 and rejected the appeal concerning the classification of the other products under sub-heading No. 7308.90. The judgment clarified the classification of each type of product based on their nature and characteristics as per the Central Excise Tariff in force during the relevant time.