2017 (6) TMI 668 - AT - Central Excise

Classification of goods - Switch Mode Power Supply, D.C. Power Supplies and Transformers etc - whether classified under CTH 8504 or under CTH 8471 - Held that - it is an admitted position that except classification list dated 05.11.1990, all other classifications filed by the appellant were approved and not challenged before any higher judicial forum - The classification list dated 05.11.1990 was also approved by the ld. Commissioner (Appeals) but the same was challenged by the department before this Tribunal and this Tribunal hold that the correct classification is under heading 8471. The demand arising out of classification dated 05.11.1990 is sustainable and rest of the demand is not sustainable - appeal allowed - decided partly in favor of appellant.

Summary

Issues: Classification of products under Central Excise Tariff Heading 8504, challenge to classification list, demand of duty, sustainability of demand.

In this case, the appellant, engaged in manufacturing Switch Mode Power Supply, D.C. Power Supplies, and Transformers, classified their products under Central Excise Tariff Heading 8504. The appellant filed multiple classification lists between 1990 and 1992. While most lists were approved without challenge, the classification list filed on 05.11.1990 was not approved, leading to a dispute. The Revenue sought to classify the products under CETH subheading 8471. The Commissioner (Appeals) initially approved the appellant's classification, but this decision was overturned by the Tribunal in favor of the Revenue's classification under 8471. Despite subsequent approved classifications, show cause notices were issued demanding duty based on the disputed classification. The authorities confirmed the duty demand, prompting the appellant to appeal.

The appellant argued that all classifications, except the one from 05.11.1990, were approved and unchallenged, making the demand unsustainable for those approved lists. The Tribunal acknowledged that the classification list from 05.11.1990 was correctly classified under heading 8471, upholding the demand for that specific list. Consequently, the Tribunal modified the impugned order, confirming the duty demand only for the products classified on 05.11.1990 under heading 8471, while setting aside the demand for other classifications.

In conclusion, the Tribunal found the demand of duty arising from the classification list dated 05.11.1990 to be sustainable under heading 8471, while the demand for other classifications was deemed not sustainable. The impugned order was modified accordingly, confirming the duty demand for the specific list in question and setting aside the demand for the rest. The appeal was disposed of with these observations.