2000 (11) TMI 404 - AT - Central Excise

Summary

Issues:
- Interpretation of Notification No. 69/86-CE regarding exemption for paper insulated copper winding wire.
- Applicability of duty rates under Sl. No. 1(ii) versus Sl. No. 4 of the Notification.
- Time limitation for demanding duty based on classification list descriptions.

Interpretation of Notification No. 69/86-CE:
The appeal addressed the issue of whether M/s. Devi Dayal Non-Ferrous Industries Pvt. Ltd. is entitled to the benefit of exemption under Notification No. 69/86-CE for paper insulated copper winding wire they manufacture. The appellant argued that the impugned goods are winding wires made of copper and should be covered under Sl. No. 1(ii) of the Notification, which provides for a 15% duty rate. They contended that the mere insulation of winding wire by paper does not change its character, and thus, the exemption should apply. Additionally, they claimed the demand was time-barred as they had not suppressed any information from the department.

Applicability of Duty Rates under Notification:
The Department argued that the impugned product should be classified under Sl. No. 4 of the Notification, which attracts a higher duty rate for insulated wires/cable. They contended that the product manufactured by the appellant is paper insulated copper wire, falling under the category of insulated wires, and therefore, should be subject to the duty rate specified under Sl. No. 4. The Department further stated that the appellants' deliberate change in the description of goods in the classification list amounted to misclassification, justifying the duty demand.

Time Limitation for Demanding Duty:
The issue of time limitation for demanding duty was raised concerning the classification list descriptions provided by the appellants. The Department argued that the change in the description of goods in the classification list was intentional misclassification, allowing the duty demand to be justified beyond the time limit. However, the Tribunal noted that the product manufactured by the appellants was indeed winding wire, and since the rate of duty under Sl. No. 1(ii) specifically refers to this product, the appellants were deemed eligible for the exemption provided under the said Sl. No. The appeal was allowed on merit without delving into the time limitation aspect.

This judgment clarifies the interpretation of Notification No. 69/86-CE regarding the exemption for paper insulated copper winding wire, emphasizing the importance of accurate classification and the specific language used in the notification to determine duty rates. The Tribunal's decision in favor of the appellant highlights the significance of correctly identifying the nature of the manufactured product for duty rate applicability, ultimately granting the appellant the benefit of the exemption under the relevant provision of the notification.