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TMI Blog1994 (9) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... n T.I. No. 51A, these Inserts were classified under that Tariff Item Number from 18-6-1977. Until 28-2-1979, the appellants paid duty accordingly. On 1-3-1979, they filed a revised classification list in which Inserts were listed at Serial Nos. 1716 to 1741. Since the Department intended to make certain inquiries likely to take some time, classification of the inserts was provisionally approved under Item No. 51A(iii). On 25-2-1980, the Assistant Collector, Central Excise, issued a Show Cause Notice asking the appellants as to why the classification in respect of the Inserts approved earlier provisionally under T.I. No. 51A(iii) should not be changed to T.I. No. 62. A similar Show Cause Notice was issued in respect of the Classification List No. 5 effective from 20-6-1979, No. 6 effective from 2-7-1979, No. 7 effective from 6-7-1979, No. 8 effective from 12-7-1979 and No. 14 effective from 28-11-1979, in so far as these pertained to the `Inserts'. Under an order dated 28-4-1980/2-5-1980, reclassification proposed under the Show Cause Notices was confirmed. That is to say, the `Inserts' were classified under T.I. No. 62 as `Tools Tips'. 2.Being aggrieved, the appellants filed an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and for short levy for the period January, 1979 to February, 1979 was barred by limitation. But the demand for the period March, 1979 to April, 1980 was sustainable. 5.The assessee applied for revision to the Central Government against the aforesaid order passed by the Collector. These cases were transferred to the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT). The Tribunal held that :- "The undisputed facts about the nature of the products are that both Tool Tips as well as Throw Away Inserts are made from carbide powder of the metals such as tungsten, molybdenum and vanadium. Both are pressed into the required shapes and then sintered (heat treated). Both are affixed on the tool handle and perform the function of machining of metals (turning and milling etc.). Thus, both are tools. So far as the differences between Tool Tips and Throw Away Inserts are concerned, the appellants gave an imposing list of 10 points of difference. The Bench asked them to show the authorities and technical literature etc. on which these points of difference were based. The appellants were not able to produce any. The points of difference between Tool Tips and Throw Away Inserts, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifference in the method of fixing them on the tool handle and the shorter life span of the Inserts do not make them basically different goods. It only means that Inserts are a separate variety of Tool Tips. From their disposable character or the shorter life span, the Inserts have acquired the adjective `Throw Away' and from their method of fixing by insertion or clamping the name `Throw Away Inserts' has come to be more commonly used. But in their basic character and use, the Inserts are nothing more than a separate species of the generic item `Tool Tips'." 8.The Tribunal concluded that Throw Away Inserts, being a variety of the generic item Tool Tips, had to be classified as specific Item 62 and could not fall under the more generic Item 51A(iii) -`Tools'. 9.Aggrieved by the decision of the Tribunal, the appellants have now come up to this Court and contend that Carbide Throw Away Inserts, manufactured by the appellants, fell under Item 51A(iii) of the Central Excise Tariff and not under Item 62, as held by the Tribunal. The relevant Tariff Items, as they stood at the relevant time, were as under :- Tools designed to be fitted into hand tools, machine"51A(iii) tools or tool ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A customer wanting to buy Throw Away Inserts will not ask for Tool Tips. Similarly, a person wanting to buy Tool Tips will not look for Inserts in the market. 13.That may be the position. But that will not solve the controversy in this case. If there is a general heading for the purpose of levy of Excise Duty, then every variety of goods falling under that general heading will have to be taxed under that heading. The fact that a particular variety is known by a particular name in the market will not take it out of the general heading. For example, when duty is leviable on biscuits, then every variety of biscuits will be taxed under that heading. A particular type of thin crisp biscuits is known in the market as `wafer', but basically it is a biscuit. It was held by the Andhra Pradesh High Court in the case of International Foods v. Collector of Central Excise, Hyderabad, 1978 (2) E.L.T. (J 50), that `wafer' was a kind of biscuit, although it may be different in size and shape from an ordinary biscuit. A pear-shaped drinking glass with a small opening is known as `snifter'. Because of that, `snifter' will not cease to be a drinking glass. To decide the question, whether Throw Aw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Standard was based on Draft ISO Recommendation No. 997 `Throw Away Carbide Tips' of the International Organisation for Standardisation (ISO). This shows that the trade and industry the world over did not consider Inserts and Tips as basically two different things, so much so that Inserts were commonly referred to as Tips. Therefore, in the context of such trade understanding, when the entry `Tool Tips, in any form or size...' appeared in the Central Excise Tariff, the only reasonable conclusion can be that it encompassed Throw Away Tips or Inserts as well. IS : 4022-1967 has remained current till about three months ago. The appellants state that the revised Specification has dropped the name `Tips' for Inserts. We have not been shown the revised Specification, but even if it is so, it can only mean that a different name has been given to Throw Away type of Tips. There has, however, been no change in the character or use of the article." 16.The assessee has been unable to bring to the notice of the Court anything to show that the nature and function or composition of a Throw Away Insert is in any way different from an ordinary Tool Tip. The highest that can be said for the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , plates, sticks, rods, pellets, rings, etc., and are characterised by great hardness, even when hot, and great rigidity. In view of their special properties these tips, plates, etc., are welded or brased on to lathe tools, milling tools, drills, dies or other high-speed cutting tools used for working metals or other hard materials. They fall within this heading whether sharpened or not, or otherwise prepared, but not if already mounted on tools : in the latter case, they fall within the headings for tools, particularly heading 82.05." 20.This heading and the explanation thereunder do not support the case of the appellants in any way. On the contrary, it makes it clear that the products made by sintering metal carbides of, inter alia, tungsten, molybdenum, vanadium, will fall under this heading. It has been clarified that these products are usually in the form of Tool Tips, plates, etc. These products will fall within this heading whether sharpened or not or otherwise prepared, but not if already mounted on tools. 21.It is not the case of the appellant that its products are mounted on tools. The composition of its product is same as mentioned in Tariff Item 62. In shape or fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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