Classification of Cast Iron Plates for Emery Machinery.

PJ/CASE LAW/2015-16/2894

Case:-COMMR. OF C. EX., LUCKNOW VERSUSRAILWAY EQUIPMENT AND ENGG. WORKS

Citation:- 2015 (325) E.L.T. 184 (Tri. - Del.)

Brief Facts:-This appeal has been filed by the Revenue against OIA No. 127-CE/LKO/2006, dated 28-8-2006. The issue involved is whether Cast Iron Plates (CI Plates) for Emery machinery manufactured by the appellant will be classified under Chapter Heading 7325.10 of the Central Excise Tariff Act (CETA), 1985 or under Chapter Heading 8437.00. Commissioner (Appeals) under OIA dated 28-8-2006 classified the same under Heading 8437.00. None appeared on behalf of the respondent and there is also no request for adjournment.

Appellants Contention:-Shri R.K. Mishra (AR) appearing on behalf of the Revenue argued that the factory of the respondent has been closed and CI Plates and machinery involved have been disposed of. That at the time of adjudication, the machine used for the manufacturing was not available for visit and the actual process of manufacture undertaken was not verifiable. That such a verification is not possible now either by the visit to the respondent or to their end-users. That directions given by Hon’ble CESTAT in remand proceedings cannot be carried out. Further argued that as per C.B.E. & C. Circular No. 23/89, dated 28-7-1989, superseded by Circular No. 225/59/1996-CX., dated 1-7-1996, castings taken out of castings moulds up to the stage of proof machining and further machining will be classifiable under Chapter Heading 73. It was his case that the order passed by the First Appellate Authority should not have made classification of CI Plates under Chapter 8437.00.

Respondents Contention:- None appeared on behalf of the Respondent.

Reasoning Of Judgement:-Heard learned (AR) and perused the case records. The issue involved in the present proceedings is the classification of Cast Iron Plates for Emery machinery manufactured by the respondent, whether under Central Excise Tariff Heading 7325.10 or 8437.00. Commissioner (Appeals), while holding the classification of the CI Plates for Emery machinery under 8437.00, has relied upon one report from Superintendent of Central Excise, Range Mathura; wherein it has been reported that “manufacturing study of CI Plates reveals that the moulds are prepared for Cast Iron Plates with the help of its pattern and then molten metal is poured into the moulds. That after solidification and cooling the cast iron plates are taken out of moulds and cleaned, brushed and battled. That after cleaning of Cast Iron Plates the same are sent to emery machine industries and does not need any subsequent machining”. From the above report reproduced in the order of the First Appellate Authority it is correctly held that the CI plates for emery machinery was classifiable under Heading 8437 of the CETA, 1985. If the manufacturing unit is lying closed at the moment then the case of the Revenue cannot be decided in their favour because it is the responsibility of the Department to establish, with documentary evidence, that the claim made by the manufacturing unit is not acceptable or that other finishing activities were required to be done on cast iron plates for emery machinery. In view of the above observations, appeal filed by the Revenue is dismissed by upholding the order passed by the First Appellate Authority.

Decision:-Appeal dismissed.

Comment:- The gist of the case is that if the department is disputing manufacturer’s or assessee’s claim for classification of goods under a particular heading, responsibility lies on department to prove their claim with documentary evidence. And, accordingly the cast iron plates for emery machine are correctly classified under Heading 8437 of Central Excise Tariff.

Prepared By:- Neelam Jain

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PJ/CASE LAW/2015-16/2894

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