9911796707
TMI Blog2002 (5) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... and (b) of the Central Excises & Salt Act, 1944, against the judgment and order of the Custom, Excise and Gold (Control) Appellate Tribunal [hereinafter referred to as 'the Tribunal'] dated 30-12-1998. The dispute is over classification of the impugned goods under the Central Excise Tariff Act, 1985 [hereinafter referred to as 'the Act'], and determination of the rate of duty payable on the goods manufactured by the appellants. The duty demand is for the period between July 1989 to December 1989 prior to the 1990 budget. 2.The stand of the Department is that the impugned goods are classifiable under sub-heading 4016.99, prior to the 1990 budget. After the 1990 budget, they are classified under sub-heading 4008.21. The contention of the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Excise, Jalandhar, and the classification of the impugned goods in Classification List No. 173/89-90 was objected to, on the ground that Classification List No. 173/89-90 was effective retrospectively with effect from 1-4-1989. 7.In addition, another show cause notice dated 5-4-90 was issued under C. No. V-40(3)II/Val/96/3712-13, by the Assistant Collector, Central Excise, Jalandhar. The Classification List filed by the appellants effective from 22-9-1989 was also objected. 8.It is pertinent to mention that show cause notice for demand of duty was issued on 2-2-1990, whereas Classification List No. 173/89-90 was objected on 30-3-1990. The demand of duty was objected to on the following grounds : 1. It was without objecting to or in rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7/AC/Demand/Val/90 dated 31-7-1990 issued C. No. V-30(5)D/90/9672 dated 4-9-1990 holding that : "I confirm the demand for Rs. 5,57,300.99 under Section 11A of the Central Excises and Salt Act, 1944. Classification List Nos. 173/89-90 and No. 163/89-90 effective from 1-4-1989 and 22-9-1989 filed by the appellants, both of which stand approved accordingly classifying the impugned goods under sub-heading 4016.99 of the 1985 Act and consequently exemption under Notification No. 47/76 dated 9-3-1976 is denied." 12.Being aggrieved by the order of the Assistant Collector, the appellants filed appeals with the Collector [Appeals], Central Excise, Chandigarh. The Collector, vide Order-in-Appeal No. 372-374/CE/Chd/91 dated 13-3-1991, set aside orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s "other". Note 9 of Chapter 40 before its amendment in 1990 states :- "In Heading Nos. 40.01, 40.02, 40.03, 40.05 and 40.08, the expressions 'plates', 'sheets', and 'strips' apply only to plates, sheets and stripes and to blocks of regular geometric shape, whether or not having the character of articles and whether or not printed or otherwise surface-worked, but not otherwise cut to shape or further worked. In Heading No. 40.08, the expressions 'rods', 'profile shapes' apply only to such products, whether or not cut to length or surface worked but not otherwise worked." Under Finance Act of 1990, Chapter 40 Note 9 was changed as under : "In Heading Nos. 40.01, 40.02, 40.03, 40.05 and 40.08, except as otherwise provided, the expression ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.16. Hence, the primary issue for consideration is the interpretation and application of Note 9 of Chapter 40 before its amendment in 1990. A plain reading of Note 9 before its amendment would show that what is covered are plates, sheets and strips which are of regular geometric shape, whether uncut or cut to rectangular shapes, whether printed or surface worked "but not otherwise cut to shape or further worked." 19.To determine the nature of the impugned goods, the difference between "surface worked" and "further worked" is significant, 'Surface working' means working on the surface of the material. 'Surface working' may include coating, polishing, colouring, embossing, corrugating or even grooving when such grooving is only on the surfa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which lead to 'surface working' were illustrated and indicated in the bracket after the words 'surface worked'. This meant that further working would constitute some process or activity, which is to be undertaken after surface working. As the manufacturing process claimed by the appellants had neither been contradicted nor shown to be wrong, it was held that the impugned goods were only 'surface worked' and 'further worked' and could, therefore, be classified under sub-heading No. 4008.21. 23.We may notice that as per Rule 3(a) of the Interpretation Rules to Central Excise Tariff Act, 1985, "The heading which provides the most specific description shall be preferred to headings providing a more general description." 24.Accordingly, the H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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