1995 (4) TMI 140 - AT - Central Excise

Issues Involved:
1. Classification of Oil Expellers and their parts.
2. Availment of small-scale exemption.
3. Time bar issue concerning the show cause notice.

Issue-wise Detailed Analysis:

1. Classification of Oil Expellers and their parts:

The primary issue revolves around the correct classification of Oil Expellers and their parts under the Central Excise Tariff Act (CETA), 1985. The assessee classified parts of Oil Expellers under sub-heading 8485.90 and sought small-scale exemption separately for these parts in addition to the exemption availed for Expellers classified under sub-heading 8479.00. The Asstt. Collector of Central Excise, Vadodara, adjudicated that both expellers and parts were classifiable under sub-heading 8479.00, confirming a duty demand of Rs. 29,769/-. On appeal, the Collector of Central Excise (Appeals), Bombay, upheld the classification under sub-heading 8479.00 and denied the exemption under Notification No. 111/88-C.E., dated 1-3-1988.

The Tribunal considered the classification history and noted that from 1-4-1988, the assessee changed the classification of parts from 8479.00 to 8485.90 to avail separate exemptions. However, the Tribunal emphasized that parts suitable for use solely with a particular kind of machine should be classified with that machine, as per Note 2(b) under Section XVI of the Tariff. The Tribunal concluded that parts of Oil Expellers should be classified with the expeller itself under sub-heading 8479.00, and not under the residuary heading 84.85.

2. Availment of small-scale exemption:

The assessee sought to avail small-scale exemption separately for Expellers and their parts by changing the classification of parts to 8485.90. The Tribunal referred to the small-scale exemption Notification No. 175/86-C.E., which allows separate exemptions for specified goods produced by a manufacturer. However, since the Tribunal concluded that parts of Oil Expellers should be classified with the expeller under sub-heading 8479.00, the small-scale exemption could not be availed separately for the parts. Both expellers and parts thereof had to be considered as one 'specified goods' for exemption purposes.

3. Time bar issue concerning the show cause notice:

The assessee raised the issue of time bar regarding the show cause notice dated 12-4-1989. Initially, the Asstt. Collector of Central Excise, Vadodara, confirmed the demand, stating it was not hit by time bar. However, upon appeal, the Collector of Central Excise (Appeals), Bombay, accepted the appellant's submission that the show cause notice was hit by time bar. The Tribunal did not delve further into this issue as the Collector (Appeals) had already ruled in favor of the appellants on the time bar aspect.

Conclusion:

The Tribunal upheld the classification of Oil Expellers and their parts under sub-heading 8479.00 of the Tariff, denying the small-scale exemption under Notification No. 111/88-C.E., dated 1-3-1988. The appeal was rejected, confirming the order passed by the Collector of Central Excise (Appeals), Bombay. The Tribunal emphasized that the Oil Expeller is not machinery used in the milling industry and therefore does not fall under sub-heading 8437.00.

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