2008 (10) TMI 408 - AT - Central Excise

Summary

Issues involved: Classification of goods under Central Excise Tariff Act - Interpretation of Rule 2(a) of Interpretative Rules and Note No. 5 to Section XVI of the Schedule.

Summary:

1. The appeal by the Revenue challenged the classification of goods as paper making machine parts under SH 8439.10, contrary to SH 8439.90 claimed by the Revenue. The appellant argued that Rule 2(a) and Note No. 5 were not applicable as parts were cleared in phases, not as a complete machine. The lower authorities upheld the classification under SH 8439.10. The appeal also pointed out an error in the memo, seeking to set aside the Order-in-Appeal.

2. The Tribunal found no grounds to interfere with the lower authorities' findings. The goods were cleared against a single purchase order for paper making machinery, and it was impractical for the respondents to have the complete machinery ready for clearance. Manufacturing and clearing large machines in parts under a single duty-paying document is a common trade practice. The absence of relevant circulars was noted, and the relief sought by the Assistant Commissioner could be partially granted by restoring the Order-in-Original.

3. The Commissioner (Appeals) issued a comprehensive order on the matter, which was deemed satisfactory. Consequently, the appeal was dismissed, affirming the classification of the goods as paper making machine parts under SH 8439.10.

*(Dictated and pronounced in open court)*