Customs, Excise and Gold Tribunal - Ahmedabad
Larsen And Toubro Limited vs C.C.E. on 21 November, 2006
Equivalent citations: 2007(209)ELT429(TRI-AHMD)
ORDER C.N.B. Nair, Member (T)
1. Heard both sides and perused record.
2. In 1995, the appellant supplied a "PTC tower" to Ministry of Defence. That supply was exempted from excise duty under order No. 56/3/97-CX dated 17th March 1997 of the Department of Revenue. Subsequently, in July 1998, the appellant supplied the Ministry of Defence "Jigs and Fixtures of PTC towers" under invoice dated 11th July 1998. A few days later, Invoice dated 17th July 1998 was issued covering the price variation for 'jigs and fixtures of PTC tower'. While clearing the said jigs and fixtures, central excise duty was paid classifying the items under sub-heading 8479.19. Show cause notice dated 15.12.98 was issued alleging that there was short levy of duty in regard to jigs and fixtures as their correct classification would be under heading 7308.90 @ 15% while duty had been paid @ 13% as applicable to goods under Chapter sub-heading 8479.19. The appellant contested the proposed revision of classification and the rate of duty but failed. An appeal was filed against that order. The appellant failed there also. The order in appeal held that the items could be used to carry out any structural works like towers, bridges, roofing frameworks etc. In the present case, they were used to carry out structural works of PTC tower. The order noted that since jigs and fixtures could be utilized for many other purposes also, they should be classified under sub-heading 7308.90.
3. Submission of the learned Counsel for the appellant is that heading 73.08, which is for structure and parts of structure, would be grossly inappropriate for jigs and fixtures which are used in the manufacture of other goods. He would emphasize that such items would be classifiable under the chapter for machines and mechanical appliances. He would also point out that in regard to jigs and fixtures manufactured in another unit of the appellant at Anand, Maharashtra, Excise authorities classified jigs and fixtures under heading 8479.10 and that order has attained finality in the absence of any appeal by the revenue. The submission of the learned Counsel is that revenue cannot be taking different stands in regard to the classification of the same goods in different jurisdictions.
4. There is merit in the appellant's contention. There is no dispute between the parties that jigs and fixtures are for use in manufacture of other items. Obviously, said items cannot find classification under heading 73.08, because that heading is for structure and parts of structure, for example, bridges and bridge sections, lock-gates, towers, lattice masts, roofs, etc. Jigs and fixtures in question were used in the manufacture of PTC tower. Therefore, they are in the nature of machine or mechanical appliances which are classifiable under heading 84. Moreover, classification under that heading remains ordered for the same goods manufactured in another jurisdiction by the appellant. Revenue cannot adopt different classifications for the same product under different jurisdictions. Apparently, classification under chapter heading 84 is more appropriate.
5. In the result, the impugned order is set aside and the appeal is allowed with consequential relief to the appellant.
(Dictated and pronounced in the open Court)