2000 (3) TMI 578 - AT - Central Excise

Summary

Issues:
Classification of M.C.I. Inserts under Chapter sub-heading 7307.10, Validity of Show Cause Notice (SCN) issued by the Assistant Collector, Jurisdiction of the Assistant Collector in issuing SCN.

Classification of M.C.I. Inserts under Chapter sub-heading 7307.10:
The appellants contended that M.C.I. Inserts should be classified under Chapter sub-heading 7307.10, citing certificates from National Metallurgical Laboratory and Northern Railway. They argued that the inserts were used as raw materials in the manufacture of concrete sleepers and did not qualify as materials for jointing or fixing rails. The Tribunal analyzed previous judgments and found that the inserts did not fall under the category of "Railways or tramway track construction material" specified in Heading No. 73.02. The Tribunal concluded that the inserts should be classified under Chapter sub-heading 7307.10 based on the processes they underwent and their use as raw materials in sleepers.

Validity of Show Cause Notice (SCN) issued by the Assistant Collector:
The appellants challenged the validity of the SCN issued by the Assistant Collector, arguing that the period of demand extended beyond six months, making the SCN ultra vires. They relied on the decision of the Supreme Court in a similar case to support their argument. However, the Tribunal referred to previous judgments and held that the SCN issued by the Assistant Collector was valid for the period from 26-6-86 to 19-11-86. The Tribunal set aside the Commissioner's order and directed the appropriate officer of Central Excise to pass a fresh order in accordance with the valid period covered by the SCN.

Jurisdiction of the Assistant Collector in issuing SCN:
The jurisdiction of the Assistant Collector in issuing the SCN was also contested by the appellants. They argued that the Assistant Collector was not the proper officer to issue the SCN, citing a Supreme Court decision in a similar case. However, the Tribunal referred to relevant case law and held that the Assistant Collector was competent to issue the SCN for a period of six months under the proviso of Section 11A(1) of the Central Excise Act, 1944. The Tribunal ruled that the demand beyond the six-month period would be affected based on the valid SCN.

In conclusion, the Tribunal classified the M.C.I. Inserts under Chapter sub-heading 7307.10, upheld the validity of the SCN issued by the Assistant Collector for a specific period, and clarified the jurisdiction of the Assistant Collector in issuing the SCN. The appeal was disposed of based on these findings and directions for a fresh order by the appropriate officer of Central Excise.