1999 (8) TMI 512 - AT - Central Excise

Summary

Issues:
Classification of Body Building of Public Passenger type Bus under Chapter Heading 8702 to 8707, Compliance with interim order under Section 35F of the Act, Applicability of Board's circular on classification.

Classification Issue:
The issue revolved around the classification of Body Building of Public Passenger type Bus, specifically whether it should be classified under Chapter Heading 8702 to 8707. The Assistant Commissioner had classified it under 8707 based on a decision of the Hon'ble Apex Court in a previous case. However, the appellants argued that a Tribunal judgment in a different case clarified that bodies built on certain chassis should remain classified under 8702. They contended that since the chassis in this case were under 8702, the classification should also be under 8702, not 8707 as per the earlier court decision.

Compliance Issue:
The Commissioner (Appeals) had dismissed the appeal of the appellants for non-compliance with an interim order under Section 35F of the Act, which directed them to pre-deposit a specific amount. The appellants had only pre-deposited a portion of the required amount, leading to the dismissal of their appeal. However, the appellants argued that a recent Board's circular clarified the classification issue and should have been considered in their case, warranting a waiver of the pre-deposit requirement.

Applicability of Board's Circular:
The Board had issued Circular No. 447/13/99-CX, clarifying the classification of bodies built on duty paid chassis in relation to the chapter note and previous judgments. The appellants contended that this circular applied to their case, leading to a reclassification under Chapter Heading 8702 instead of 8707. They argued that the Commissioner should have considered this circular, which would have resulted in a waiver of the pre-deposit requirement and a remand of the case for further consideration on merits.

In conclusion, the Appellate Tribunal allowed the stay application, granted a waiver of the pre-deposit requirement, and remanded the matter to the Commissioner (Appeals) for re-examination in light of the Board's circular. The Tribunal noted that the circular clarified the classification issue, leading to a reclassification under Chapter Heading 8702. The appeal was allowed by way of remand, emphasizing the importance of considering relevant circulars and judgments in determining the classification of goods.