COMMISSIONER OF C. EX. Vs. RUNGTA IRRIGATION LTD.

JUDGEMENT

(1.) The issue in this case pertains to classification of the HDPE pipes manufactured by the respondents. When the respondents filed a revised classification declaration with the department under Rule 173B (of the Central Excise Rules 1944) claiming classification of their product (HDPE pipes) as a part of Sprinkler Irrigation System under sub -heading 8424.91 (rate of duty "Nil") of the CETA Schedule, the department opposed the claim and insisted on continuance of the earlier classification under SH 3917.00 (rate of duty 16%). The original authority held the classification under SH 3917.00 and demanded duty on the clearances for the period July 2001 - March 2002. It also imposed a penalty on the party. The decision of the original authority was set aside by the first appellate authority in the assessee's appeal. The appellate authority classified the goods under SH 8424.91 as claimed by the assessee, and vacated the duty demand and penalty. Hence this appeal of the Revenue.

(2.) Heard SDR for the appellant and counsel for the respondents. Ld. DR reiterated the ground raised in the appeal memo. He particularly submitted that the plastic pipes/tubes manufactured and cleared by the respondents were goods of general use and hence stood excluded from the purview of Section XVI (which included Chapter 84) by virtue of Note 1(g) to the said Section, XVI of the Schedule to the Central Excise Tariff Act. Ld. SDR relied on para (2) of the Board's Circular No. 380/13/98 -CX, dated 16 -3 -1998 and submitted that, in terms of the said para, the plastic pipes/tubes of the respondents could be classified under Heading 39.17 only. He also relied on the Tribunal's decisions in the cases of Jyoti Plastic v. Collector [1993 (64) E.L.T. 291] and Supreme Industries v. Collector [1999 (106) E.L.T. 207].

(3.) Ld. Counsel reiterated the findings of facts recorded in the impugned order and submitted that, on similar facts, the Tribunal had already held plastic pipes/tubes and other parts of irrigation equipments to be classifiable under Heading 84.24 of the CETA Schedule. He cited the following decisions of the Tribunal: