2004 (5) TMI 503 - AT - Central Excise

Summary

Issues:
1. Appeal against the order-in-appeal passed by the Commissioner (Appeals) regarding duty liability on steel structural items.
2. Classification of goods under Heading No. 73.08 and exemption under Notification No. 41/94-C.E.
3. Dispute regarding the manufacturing process and duty liability of the goods.
4. Challenge on limitation grounds.

Analysis:
1. The appeal before the Appellate Tribunal CESTAT, Mumbai, involved a dispute over the order-in-appeal passed by the Commissioner (Appeals). The respondents, engaged in manufacturing steel structural items on a job work basis, had their appeal allowed by the Commissioner (Appeals), which the revenue challenged seeking restoration of the adjudicating authority's order.

2. The main contention revolved around the classification of the goods under Heading No. 73.08 as "structures and parts of structures" and the applicability of full exemption from Central Excise duty under Notification No. 41/94-C.E. The Commissioner (Appeals) held the goods not liable to duty based on this classification, while the revenue disputed this claim, arguing that the goods were fabricated in the factory and then transported to the site for installation.

3. The revenue relied on a Board's Circular to support their argument that the goods, which go into the erection of structures, fall under a specific sub-heading of the Central Excise Tariff Act. On the other hand, the respondents contended that there was no clear finding by the adjudicating authority regarding the classification of the goods, and the processes applied did not change the character of the received materials.

4. After considering the arguments from both sides, the Tribunal found that the goods were indeed fabricated in the factory before being transferred to the site, contrary to the Commissioner (Appeals)'s decision based on "manufacture at site." However, recognizing substantial grounds raised by the respondents challenging duty liability, the Tribunal decided to remand the matter back to the adjudicating authority for a fresh decision on the merits, emphasizing the need for a proper assessment.

5. Ultimately, the Tribunal allowed the revenue's appeal by remanding the case to the adjudicating authority for fresh orders, ensuring the principles of natural justice were followed. Consequently, the orders of the lower authorities were set aside, and a new decision was to be made considering all aspects of the case.