Classification of sprayer engine – Board invites suggestions
Board proposes to issue a circular clarifying that sprayer engine is to be classified under Chapter Heading 84.07 of the First Schedule to the Central Excise Tariff Act, 1985. There is no change at the 4 digit level even in the 8 digit Tariff. Board is aware of two interesting cases while coming to this conclusion.
1. The Assistant Commissioner, Division-I, Surat-I Commissionerate, passed an order classifying product under chapter heading 84.07 of CETA 1985 and appeal against the said order was rejected by Commissioner (Appeal). CEGAT dismissed the appeal filed by the assessee against the said order-in-appeal of Commissioner (Appeal) on account of non-compliance with the stay order.
2. CEGAT, Chennai Bench in the case of Commissioner of Central Excise, Chennai-III Vs. M/s. Greaves Limited [2002-(148)-ELT-0059-(T)] on classification of sprayer engines classified the product under 84.24. The appeal filed by the department against the said order of the Tribunal was summarily dismissed by the Hon’ble Supreme Court without going into the merits of the case. Mere rejection by Hon’ble Supreme Court would mean that the Apex Court refused to exercise its jurisdiction and therefore could not by itself be considered as the decision of the Apex Court on merit on the correctness of the decision sought to be appealed against. The short order passed by the Hon’ble Supreme Court in the matter of CCE Chennai –III vs. Greaves Ltd. cannot be treated as a declaration of law by the Hon’ble Supreme Court.
So how does the Board go about nullifying the Supreme Court order? Not by retrospective legislation as you must be thinking. They have now come up with a new device. Just a circular! Any way if the field or the assessees have any problem with the Board decision, they can send their views to dscx4cbec@yahoo.com by 23rd September 2005.
Section 37B Order – draft circular