1999 (7) TMI 142 - AT - Central Excise

Summary

Issues:
Rectification of mistake alleged in the Tribunal's Final Order regarding classification of steel wool and sponge steel under Tariff Heading 7205 and availability of exemption under Notification No. 94/88.

Analysis:
The application before the Appellate Tribunal CEGAT, Chennai was for rectification of a mistake alleged in the Final Order passed by the Tribunal regarding the classification of steel wool and sponge steel. The applicants argued that steel wool manufactured by them should be considered similar to sponge steel and thus covered by Tariff Heading 7205. They contended that the Explanatory Notes of HSN should be given preference in classification matters, citing relevant legal precedents. The applicants also provided evidence to show that in trade parlance, their steel wool was allowed as sponge steel. However, the Tribunal had previously held that steel wool is different from sponge steel and not covered by the relevant tariff heading or exemption notification.

The learned Consultant for the applicants argued that the submissions regarding the similarity between steel wool and sponge steel were recorded in the final order but not considered, leading to an error apparent on the face of the record. On the other hand, the learned DR for the respondent contended that the submissions were indeed considered and rejected by the Tribunal after detailed examination. The Tribunal noted that the pleas made by both sides were carefully considered, and a conclusion was reached that steel wool and sponge steel are distinct, with steel wool falling outside the scope of the relevant tariff entry. The Tribunal emphasized that the tariff entry must be interpreted based on its own wording, and in this case, steel wool was deemed different from sponge steel.

After reviewing the submissions and records of the case, the Tribunal found that the arguments put forth by the applicants had been duly considered but ultimately not accepted due to the distinct nature of steel wool compared to sponge steel. The Tribunal concluded that there was no error apparent on the face of the record warranting rectification. The Tribunal advised the applicants to pursue appellate measures if they were unsatisfied with the decision. Consequently, the application for rectification was rejected by the Tribunal based on the findings that there was no merit in the request.

In summary, the Tribunal's decision upheld the classification of steel wool as distinct from sponge steel under the relevant tariff heading, dismissing the application for rectification of the alleged mistake in the Final Order. The Tribunal emphasized the importance of interpreting tariff entries based on their own wording and denied the rectification request, suggesting the appellants seek recourse through appellate measures if needed.