2004 (8) TMI 480 - AT - Central Excise

Summary

Issues:
Classification of Tube Repairing Compound under Notification No. 8/99-C.E., dated 28-2-99.

Analysis:
The appeal concerns the classification of Tube Repairing Compound under Notification No. 8/99-C.E., dated 28-2-99. The Revenue challenged the order-in-appeal affirming the order-in-original by the Commissioner (Appeals) regarding the classification of the product. The dispute revolves around whether the product falls under sub-heading 4006.90 or 4005.90 of the Central Excise Tariff Act (CETA). The lower authorities classified the product under 4006.90, while the department argued for classification under 4005.90.

The Adjudicating Authority initially classified the product under Heading 40.06 (Sub-heading 4006.90) after physically examining it, considering it to be in a profile shape of unvulcanised rubber. The Commissioner (Appeals) upheld this classification. However, during the appeal, a sample of the product was presented, showing it to be in a square sheet form, not a profile shape as claimed by the lower authorities. The judges found the lower authorities' classification erroneous, emphasizing the distinction between profile and sheet shapes. They concluded that the product is correctly classified under Heading 40.05 (Sub-heading 4005.90), making it ineligible for the benefits of Notification No. 8/99-C.E., dated 28-2-99.

As a result of the analysis, the Tribunal held that the Tube Repairing Compound should be classified under Heading 40.05 (Sub-heading 4005.90), requiring the respondents to pay duty on clearances made during the relevant period specified in the show cause notice. The impugned order of the Commissioner (Appeals) was overturned, and the Revenue's appeal was accepted, granting consequential relief as per the law.