1999 (7) TMI 153 - AT - Central Excise

Summary

Issues:
Classification of aluminium paste supplied with varnish under Chapter sub-heading 3208.10 and denial of concessional rate of duty under Notification No. 76/86.

Analysis:
1. Classification Issue:
The case involved the classification of aluminium paste supplied with varnish under Chapter sub-heading 3208.10. The appellants contended that their product should be classified under Chapter sub-heading 3212.90. The appellants argued that the product consisted of metallic powders (aluminium paste) in non-aqueous media (varnish in paste form), making it correctly classifiable under 3212.90. They emphasized that the product was not based on synthetic polymers as required for classification under 3208.10. The appellant's counsel referred to a previous Tribunal decision to support their argument. The Department, however, maintained that the product fell under 3208.10. The Tribunal noted the absence of a specific finding on the constituents of the product for classification in the impugned order and remanded the case for re-examination by the Commissioner (Appeals) to determine the classification issue after affording the appellants an opportunity to be heard.

2. Benefit of Notification No. 76/86 Issue:
Apart from the classification issue, the appellants also sought the benefit of Notification No. 76/86, which provided a concessional rate of duty. The Tribunal's decision to remand the case for re-examination by the Commissioner (Appeals) encompassed not only the classification issue but also the admissibility of the product for the benefit of the notification. The Tribunal directed the Commissioner (Appeals) to examine both issues afresh in light of the previous judgment and to render a categorical finding after allowing the appellants an opportunity to present their case. The appeal was allowed by way of remand, indicating that a fresh determination was necessary on both the classification and the benefit of the notification.

In conclusion, the judgment addressed the issues of classification of the product under the appropriate Chapter sub-heading and the admissibility of the product for the concessional rate of duty under Notification No. 76/86. The Tribunal's decision to remand the case for re-examination by the Commissioner (Appeals) highlighted the importance of considering the constituents of the product for classification and evaluating its eligibility for the benefit of the notification. The detailed arguments presented by the appellants, supported by legal references, underscored the complexity of the classification issue, necessitating a thorough re-evaluation by the lower authorities.