2001 (7) TMI 645 - AT - Central Excise

Summary

Issues: Classification of goods under Central Excise Tariff, Benefit of Notification 179/77

The judgment by the Appellate Tribunal CEGAT, New Delhi involved an appeal against an order-in-original passed by the Collector of Central Excise, Bombay, regarding the classification of profiles and circles made from duty-paid M.S. plates/sheets under T.I. 68 of the Central Excise Tariff. The Collector held that these items amount to manufacture and confirmed a demand along with imposing a penalty. The appellant did not challenge the classification but contended that they were entitled to the benefit of Notification 179/77, which exempts goods produced without the aid of power from duty. The appellant argued that the Collector did not consider their plea on this ground as it was not raised before the adjudicating authority initially. The Tribunal had remanded the matter to the Commissioner for fresh consideration, and the order was passed in the remand proceedings, leading to the allowance of the appeal based on the benefit of the notification.

The appellants, in this case, were manufacturing profiles and circles, and the lower authorities classified these goods under T.I. 68 of the Central Excise Tariff. The appellants did not dispute this classification but claimed entitlement to the benefit of Notification No. 179/77. The Collector had acknowledged this claim made by the appellants, but refrained from giving a decision on it due to the claim not being raised before the first adjudicating authority. The appellants had argued that the cutting of profiles and circles from duty-paid sheets does not constitute manufacture and that these items should fall under the same tariff heading as the sheets. However, the Collector disagreed, stating that such cutting amounts to manufacture and falls under T.I. 68 of the Central Excise Tariff. The appellants had specifically contended that they manufactured these items without using power, relying on liquified gas instead. Given that Notification No. 179/77 exempts goods produced without power from duty, the Tribunal set aside the impugned order and allowed the appeal based on the appellants' compliance with the notification requirements.

In conclusion, the judgment centered on the classification of goods under the Central Excise Tariff and the applicability of Notification 179/77. The Tribunal's decision highlighted the importance of raising all relevant claims before the adjudicating authorities and emphasized the need for consistency in applying statutory exemptions such as the one provided under the mentioned notification. The case serves as a reminder of the procedural and substantive aspects that need to be considered in excise duty matters, ensuring that all legal grounds and benefits are appropriately addressed and adjudicated upon during the proceedings.