Plastrulon Process Ltd. Vs. Commissioner of C. Ex. and Customs

1. the present application is for dispensing with the pre-deposit of rs. 22,32,245/-. the ld. counsel shri r.j. parakh, contended that the department had all along classified their product viz. steel pipes fitted with teflon lining material as articles of plastics under chapter 39 heading 3917.00 of central excise tariff act, 1985.subsequently, the department suddenly sought to change the classification by reviewing the a.c's order of approval from chapter 39 to chapter 73. the commissioner (appeals) allowed review application of the department and held that the goods will be classifiable under chapter heading 73.05 and 73.04 ceta as pipe fittings. the differential duty is being demanded.2. the ld. counsel urged that theirs is a composite product wherein the teflon lining imparts the essential character to the goods and classification should therefore be as plastic material as correctly done earlier under chapter 39 ceta. on the other hand, shri d. gurnani, jdr, referred to the product literature available on record and stated that the essential character is given to the goods by the steel pipes which alone is capable of withstanding high pressure and also fight corrosion. we find the issue is arguable and are of the view that prima facie case for dispensing with pre-deposit has not been made out. we therefore, direct that for the purpose of hearing the appeal on merits in terms of section 35f of the central excise act, 1944, the applicant should pre-deposit rs. 10 lakhs on or before 15-3-1997.3. the matter will come up for ascertaining compliance with this order on 17-3-1997. on compliance with this order, pre-deposit the balance duty amount is disposed with and recovery stayed.