2000 (10) TMI 596 - AT - Central Excise

Summary

Issues:
Classification of 'refractory checker', 'burner', and 'insulation bricks' under Heading 6901.00 or Heading 6911.00. Barred by limitation.

Analysis:
1. Classification Issue:
The dispute revolves around whether the items in question are to be classified under Heading 6901.00 as refractory material or under Heading 6911.00 as residuary items. The appellants argue that the goods are refractory items used in high-temperature furnaces and kilns, thus falling under Heading 6901.00. They rely on HSN explanatory notes emphasizing resistance to high temperatures and rapid temperature changes, qualities essential for refractory goods. The definition of refractories from Chambers Science and Technology Dictionary further supports this argument, stating that refractories must withstand high temperatures, changes in temperature, and corrosive effects. The appellants also cite a Tribunal decision and a Supreme Court ruling regarding the burden of proof on classification. They contend that the Revenue failed to prove that the items do not fall under Heading 69.01, which covers refractory materials.

2. Limitation Issue:
The appellants challenge the demands raised beyond the normal limitation period, arguing that their classification lists were approved under Heading 69.01 during the relevant periods. They assert that there was no suppression of facts or intentional misstatement to warrant an extended limitation period. The Tribunal agrees, stating that the approval of classification lists is not merely a formality but involves verification and inquiry by the proper officer. Since the appellants provided accurate descriptions in their approved lists, they cannot be accused of evasion. Consequently, the Tribunal rules that the demands are time-barred.

3. Decision:
After thorough examination, the Tribunal concludes that the 'refractory checker', 'burner', and 'insulation bricks' should be classified under Heading 6901.00 as refractory materials. Additionally, the demands raised are deemed barred by limitation due to the approved classification lists and lack of evidence of suppression or misstatement by the appellants. Therefore, the appeal is allowed both on the merits of classification and the limitation issue.