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1999 (10) TMI 305 - AT - Central Excise
Issues:
Classification of goods under Heading 73.25 or Heading 84.55 of the Central Excise Tariff Act. Analysis: The appeal involved a dispute regarding the classification of goods manufactured by M/s. Gurukartar Steels (P) Ltd. The Collector classified Adamite Rolls/Chill Rolls under Heading 84.55 of the Central Excise Tariff Act, leading to a demand for duty and a penalty. The appellants contended that the goods were steel castings and had not achieved the essential characteristics of rolls until further processing. They argued that the removal of excess material was necessary due to technical limitations in casting steel. The appellants cited relevant case laws and a circular from the Central Board of Excise & Customs to support their position. The Department argued that the castings had attained the specific shape of rolls and were appropriately classified under Heading 84.55. They claimed that the extended period of limitation applied due to the suppression of facts regarding the manufacturing process. The Department also contested the withdrawal of a previous show cause notice, stating it was withdrawn by an incompetent authority. After considering both sides' submissions, the Tribunal found in favor of the appellants. They noted that the Department failed to provide evidence to refute the customer's statement that the castings were un-machined when purchased. Relying on precedents, the Tribunal held that the goods should be classified under Heading 73.25 as they had not reached the stage of being considered rolls. The Tribunal did not delve into the extended period of limitation issue as the appeal was allowed on merit. In conclusion, the appeal was allowed on merit, and the goods were classified under Heading 73.25 of the Central Excise Tariff Act. The Tribunal's decision was based on the lack of evidence supporting the Department's claim that the goods had attained the specific shape of rolls, as well as the customer's statement regarding the initial state of the castings.
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