1999 (12) TMI 308 - AT - Central Excise

Summary

Issues:
Classification of 'Actuators' under Central Excise Tariff Act - Heading 85.01 or Heading 85.43; Time limit for demanding Central Excise duty.

Classification Issue:
The appeal involved the classification of 'Actuators' manufactured by the Respondents under the Central Excise Tariff Act. The Revenue contended that the Actuators should be classified under Heading 85.01 as electric motors, citing the inclusion clause B(3) of Chapter 85 of H.S.N. Explanatory Notes. The Respondents argued that the Actuator is an independent product comprising various components, not synonymous with an electric motor. They relied on previous decisions to support their classification under Heading 85.43. The Tribunal analyzed the definitions and Explanatory Notes of H.S.N., concluding that the Actuators fell under Heading 85.01 based on their function of regulating flow, in line with the Explanatory Notes.

Time Limit Issue:
Regarding the time limit for demanding Central Excise duty, the Respondents argued that the duty demand was time-barred as they had filed the classification list since 1975, with the list approved by the Department. They contended that there was no suppression of facts on their part. The Tribunal agreed with the Respondents, stating that the extended period of limitation under Section 11A of the Central Excise Act was not applicable as the classification list had been approved by the Competent Officer. The Tribunal emphasized that the duty could only be demanded for the period of six months before the show-cause notice date, rejecting the Revenue's claim of extended period due to alleged lack of details in the classification list.

In conclusion, the Tribunal classified the 'Actuators' under Heading 85.01 of the Central Excise Tariff Act, emphasizing the function and Explanatory Notes of H.S.N. The time limit for demanding Central Excise duty was found inapplicable due to the approved classification list and lack of suppression of facts by the Respondents. The appeal was disposed of based on these determinations.