2000 (3) TMI 245 - AT - Central Excise

Summary

Issues:
Classification of HDPE woven sacks under Central Excise Tariff - Sub-heading 3923.90 vs. 6301.00.

Analysis:
The appeal was filed against an order classifying HDPE woven sacks under sub-heading 3923.90 of the Central Excise Tariff by the Collector of Central Excise (Appeals). The appellants initially classified the product under sub-heading 6301.00, which was approved by the Assistant Collector but challenged by the Revenue. The Collector (Appeals) set aside the approval and directed classification under sub-heading 3923.90 based on legal precedents and a circular by the Central Board of Excise & Customs.

The main contention was whether the initial classification approval under sub-heading 6301.00 was final and binding. The appellants argued that the Collector (Appeals) wrongly ignored the approved classification and applied the Board's circular retrospectively. However, it was found that the initial approval was not final as it was challenged and reversed by the Collector (Appeals). Therefore, the classification under sub-heading 3923.90 was deemed appropriate from the date of filing the classification list.

The Collector (Appeals) decision to classify under sub-heading 3923.90 was upheld as legally sound. The argument that the Board's circular was applied retrospectively was dismissed, as the product had always been classifiable under that sub-heading based on legal precedents. The judgment emphasized that the circular merely clarified existing classification practices and did not introduce a new classification.

Legal precedents cited by the appellants were deemed irrelevant to the case at hand. The judgments highlighted that the department's actions were in line with the Board's circular and legal principles. The judgment differentiated the circumstances of this case from those in the cited precedents, reinforcing the validity of the Collector (Appeals) decision.

In conclusion, the appeal was dismissed as lacking merit. The judgment affirmed the Collector (Appeals) classification of HDPE woven sacks under sub-heading 3923.90 of the Central Excise Tariff, emphasizing the legal validity of the decision based on existing laws and precedents.