1999 (4) TMI 237 - AT - Central Excise

Summary

Issues:
Classification of Minimum Oil Circuit Breaker under Heading 85.35 or 85.37
Applicability of Board's circular with retrospective effect

Classification Issue:
The dispute in the appeals revolves around the classification of Minimum Oil Circuit Breaker under Heading 85.35 or 85.37. The Department contends that it falls under Heading 85.37 based on a circular. The appellants argue against the retrospective application of this circular, citing a Supreme Court decision. The Tribunal refers to a previous decision and holds that Bulk Oil Circuit Breakers are classified under 85.37. As the appellants do not press for any other classification, the Tribunal applies the same ratio and classifies the goods under Chapter Heading 85.37.

Applicability of Board's Circular Issue:
Regarding the applicability of the Board's circular with retrospective effect, the Tribunal considers the nature of the circular and previous decisions. The appellants argue that the circular, being an order under Section 37B, should have prospective effect only, citing a Tribunal decision. The Department contends that the circular is clarificatory and should have retrospective effect. The Tribunal, in line with the precedent, holds that the circular will be operative only prospectively. As a result, the duty demand is to be recalculated from the date of the circular, and any excess pre-deposited amount is to be refunded to the appellants. The matter is remanded for de novo consideration by the original authority within a specified time frame.

In conclusion, the Tribunal partially allows the appeal, settling the classification issue under Heading 85.37 and determining the prospective applicability of the Board's circular. The decision provides clarity on the classification of the goods and the retrospective effect of the circular, ensuring a fair assessment of duty payable and refund of excess pre-deposited amounts.