1997 (11) TMI 162 - AT - Central Excise

Summary

Issues:
Classification of goods under sub-heading 7211.11 or 7214.90 of the Tariff - Interpretation of Chapter Note (k) of Chapter 72 - Applicability of Circular No. 20/89 - Comparison with the judgment of Calcutta Steel Industries v. Collector of Central Excise - Consideration of HSN Chapter 72 - Residuary classification under Note (m) - Tribunal's decision and confirmation by the Hon'ble Supreme Court.

Analysis:
The appeals before the Appellate Tribunal CEGAT, New Delhi arose from a common order passed by the Collector (Appeals), New Delhi regarding the classification of 'rolled flat products of Iron & Steel' by the appellants. The dispute revolved around the classification under sub-heading 7211.11 as 'flats' or sub-heading 7214.90 as 'other bars and rods' based on the interpretation of Chapter Note (k) of Chapter 72 and Notification No. 202/88. The Assistant Collector had classified the goods as 'flats', attracting specific duty rates, which was contested by the appellants.

The Collector (Appeals) upheld the classification under sub-heading 7211.11, considering the manufacturing process, dimensions, and market understanding of the goods. The appellants argued that the goods were known as 'flats' in the market and relied on Circular No. 20/89, emphasizing the classification based on characteristics and dimensions as per Chapter notes. They contended that the products did not fall under the definition provided in Chapter Note (k) and should be classified under sub-heading 7214.90.

In the judgment of Calcutta Steel Industries v. Collector of Central Excise, the Tribunal considered similar issues regarding the classification of flat products and dimensions. The Tribunal analyzed the HSN Chapter 72, definitions of flat rolled products, bars, rods, and other related items to determine the appropriate classification. The Tribunal's decision favored the appellants' claim under sub-heading 7214.90 as 'other bars and rods of non-alloy steel', contrary to the Assistant Collector's classification under sub-heading 7211.11 as 'flats'.

The Tribunal's detailed analysis included a comparison of definitions, production processes, and historical classifications to conclude that the appellants' products were more appropriately classified as 'other bars and rods'. The Tribunal's decision was subsequently confirmed by the Hon'ble Supreme Court, reinforcing the correctness of the classification under sub-heading 7214.90. Therefore, the Appellate Tribunal allowed the appeals, setting aside the impugned orders and upholding the classification under sub-heading 7214.90 based on the interpretations of Chapter Note (k) and relevant precedents.