1993 (11) TMI 134 - AT - Central Excise

Summary

Issues:
Classification of shutter lath sections, guide channels, and bottom plates under Heading No. 7216.20 or 73.08.

Analysis:
The appeal involved determining the classification of products manufactured by the appellants used in making shutters under Heading No. 7216.20 or 73.08. The Adjudicating Authority classified the items under 73.08, stating they were prepared for use in structures of iron or steel. However, the Appellate Authority disagreed, emphasizing that shutters are not structures but parts of structures, thus not falling under 73.08. The items in question were cold-formed sections - shutter lath, guide channels, and bottom plates - used in shutter fabrication, not in structures directly, as confirmed by the lower authority.

The appellants argued that further processes were necessary on the sections before using them in shutters, such as bending, shaping, cutting, and welding. Expert opinions supported this claim, highlighting the need for additional operations post-manufacture. The Department contested the expert's credibility, but the appellants provided evidence from Vinayagar Engineering Works detailing the operations required for shutter manufacturing using the sections supplied by the appellants.

The Order-in-Original's basis was that the sections were prepared for use in shutters, considered structures. However, the Appellate Authority correctly noted the lack of evidence supporting this claim. The appellants demonstrated that significant operations were needed post-manufacture to make the sections usable in shutter production, refuting the notion that they were prepared for immediate use in structures. Consequently, the Adjudicating Authority's classification under 73.08 was deemed unsubstantiated, and Rule 3 of the interpretation Rules was not applicable due to the lack of specificity in the description under 73.08.

Ultimately, the Appellate Tribunal upheld the Order-in-Appeal, rejecting the Department's appeal. The decision rested on the absence of evidence supporting the immediate use of the sections in structures, as well as the necessity of post-manufacture operations to make them suitable for shutter production.