2000 (2) TMI 521 - AT - Central Excise

Summary

Issues: Classification of Expoxy Polyster Coated Sheets/strips and slitter edges/side trims under the Central Excise Tariff Act.

In the appeal filed by M/s. Tata Iron Steel Co. Ltd. (TISCO), the primary issue was the classification of Expoxy Polyster Coated Sheets/strips and slitter edges/side trims under the Central Excise Tariff Act. The appellant claimed that the Expoxy Polyster Coated Sheets/strips should be classified under sub-heading 7212.31, while the Collector (Appeals) classified them under sub-heading 7212.39. Regarding slitter edges and side trims, the appellant argued that they should not be classified as strips but as waste and scrap of iron and steel for remelting purposes.

The appellant's advocate contended that the Expoxy Polyster Coated Sheets/strips should be classified under sub-heading 7212.31 as they are made from hot rolled strips. He argued that if the product is not considered lacquered or varnished, it should not be classified under the residuary sub-heading 7212.39. The advocate also emphasized the importance of the condition of goods at the time of clearance for classification under the Tariff, citing relevant case law.

On the other hand, the Department's representative argued that the Expoxy Polyster Coated Sheets should be classified under sub-heading 7212.39 as they are not lacquered or varnished but coated with plastics. Regarding slitter edges and side trims, it was contended that they should be classified as sheets under sub-heading 7212.31.

After considering the submissions, the Tribunal noted that the sub-heading 7212.31 applies only to lacquered or varnished sheets, and as plastic coating is not covered by these terms, the Expoxy Polyster Coated Sheets could not be classified under sub-heading 7212.39. Instead, they were classified under sub-heading 7212.90. The Tribunal also relied on a Supreme Court case to classify slitter edges and side trims as shapes of iron and steel under the appropriate heading of the Tariff, contrary to the Department's classification as waste and scrap.

Ultimately, the appeal was disposed of with the classification of Expoxy Polyster Coated Sheets/strips under sub-heading 7212.90 and slitter edges/side trims as shapes of iron and steel under the appropriate heading of the Tariff, in accordance with the Tribunal's findings and relevant legal precedents.