2000 (2) TMI 433 - AT - Central Excise

Summary

Issues:
Classification of products under Chapter Heading No. 84.24 or 74.15 of Central Excise Tariff Act, Time limitation for raising demand.

Analysis:
The appeal involved the classification of products - Connector Tubes, Coupling Nuts, Range Nozzles, Ball Fountain Nozzle Assembly, and Ring Fountain Nozzle Assembly - under Chapter Heading No. 84.24 or 74.15 of the Central Excise Tariff Act. The appellants, manufacturers of parts of Sprinkler Irrigation equipments, claimed exemption under Notification No. 111/88 dated 1-3-88 by classifying their products under Chapter Heading No. 84.24. However, a show cause notice was issued challenging this classification, asserting that the products should be classified under 74.15 of the Tariff, attracting Central Excise duty. The Assistant Commissioner confirmed the duty demand, which was upheld by the Collector, leading to the appeal before the Tribunal.

The Tribunal analyzed the classification issue by considering the function and essential character of the products. It noted that the items in question - nuts, bolts, and similar articles - did not fall under Chapter Heading No. 84.24 but were covered by Chapter Heading 74.15 of the Tariff, which includes nuts, bolts, screws, and similar items made of copper, iron, or steel. The Tribunal emphasized that the end use of the items, such as being parts of sprinkler irrigation equipment, was immaterial for classification, citing legal precedents. Referring to relevant case law, the Tribunal concluded that the products should be classified under Chapter Heading 74.15 as nuts and bolts, agreeing with the authorities below.

Regarding the time limitation for raising the demand, the appellants argued that the demand was time-barred as they cleared the goods under approved classification lists. However, the Tribunal rejected this argument, stating that since the Revenue challenged the correctness of the classification lists, the time limitation did not apply. The Tribunal found no merit in the appeal and dismissed it, upholding the classification of the products under Chapter Heading 74.15 and rejecting the time limitation defense.

In conclusion, the Tribunal affirmed the classification of the products under Chapter Heading 74.15 of the Central Excise Tariff Act, emphasizing the function and nature of the items. It also clarified that the time limitation for raising the demand did not apply in this case due to the challenge to the classification lists. The appeal was dismissed, and the decision of the authorities below was upheld.