2015 (10) TMI 875 - AT - Central Excise

Classification of goods - Classification under Central Excise Tariff heading 7325.10 or 8437.00 - Held that - After solidification and cooling the cast iron plates are taken out of moulds and cleaned, brushed and battled. That after cleaning of Cast Iron Plates the same are sent to emery machine industries and does not need any subsequent machining. From the above report reproduced in the order of the First Appellate Authority it is correctly held that the CI plates for emery machinery was classifiable under heading 8437 of the CETA, 1985. If the manufacturing unit is lying closed at the moment then the case of the Revenue cannot be decided in their favour because it is the responsibility of the Department to establish, with documentary evidence, that the claim made by the manufacturing unit is not acceptable or that other finishing activities were required to be done on cast iron plates for emery machinery. - Decided against Revenue.

Summary

Issues involved:
Classification of Cast Iron Plates (CI Plates) for Emery machinery under Chapter Heading 7325.10 or 8437.00 of the Central Excise Tariff Act (CETA) 1985.

Analysis:
The appeal was filed by the Revenue against the Order-in-Appeal (OIA) No. 127-CE/LKO/2006 dated 28/08/2006, regarding the classification of CI Plates for Emery machinery. The main issue was whether these plates should be classified under Chapter Heading 7325.10 or 8437.00 of the CETA 1985. The Commissioner (Appeals) classified the CI Plates under heading 8437.00. The Revenue argued that due to the closure of the respondent's factory, the actual manufacturing process could not be verified. The Revenue also referred to CBEC Circulars to support their classification under Chapter Heading 73. However, it was contended that the order of the First Appellate Authority correctly classified the CI Plates under Chapter 8437.00 based on a report from the Superintendent of Central Excise, Range Mathura, which detailed the manufacturing process of the CI Plates for Emery machinery.

The Tribunal heard the arguments and examined the case records. It was noted that the issue at hand was the classification of the CI Plates for Emery machinery. The Commissioner (Appeals) relied on the report from the Superintendent of Central Excise, which described the manufacturing process of the CI Plates, indicating that they were directly sent to emery machine industries without needing any further machining. The Tribunal affirmed that the CI plates were rightly classified under heading 8437.00 of the CETA 1985. It was emphasized that if the manufacturing unit was closed, the Revenue had the burden to provide documentary evidence to refute the classification under Chapter 8437.00. Consequently, the appeal filed by the Revenue was dismissed, upholding the order of the First Appellate Authority.

In conclusion, the Tribunal's decision upheld the classification of Cast Iron Plates for Emery machinery under Chapter Heading 8437.00 of the Central Excise Tariff Act, 1985, based on the manufacturing process and the lack of evidence provided by the Revenue to challenge this classification.