M/S.Titan Industries Ltd. Vs. Commissioner of Central Excise, Chennai - Court Judgment

SooperKanoon Citationsooperkanoon.com/942640
CourtCustoms Excise and Service Tax Appellate Tribunal CESTAT Chennai
Decided OnDec-15-2009
Case NumberAppeal No.E/126 of 2002
Judge THE HONOURABLE MS. JYOTI BALASUNDARAM, VICE PRESIDENT & THE HONOURABLE DR. CHITTARANJAN SATAPATHY, TECHNICAL MEMBER
AppellantM/S.Titan Industries Ltd.
RespondentCommissioner of Central Excise, Chennai
Advocates:Shri M. Kannan, Adv. Shri C. Rangaraju, SDR
Excerpt:
per jyoti balasundaram the appellants herein are engaged in the manufacture of watches in their watch division. they also undertake the process of gold plating of watch cases and straps. during the course of gold plating, titanium and gold get deposited in the walls of the chamber and these are peeled off. besides, there is also gold in the batch solution and on the copper wire in which the components are tied. this gold is recovered and cleared to their own jewellery division for melting/refining and conversion into gold ingots/bars. according to the department, recovered gold is waste and scrap of gold classifiable under cet sub-heading 7101.80, while according to the assessees, the item falls for classification under cet sub-heading 7101.39 2. we have heard both sides against the classification of gold recovered during the course of gold plating. we find that in the case of the same assessees, the tribunal has accepted their claim for classification under 7101.39, as seen from 2001 (134) e.l.t. 292 [commissioner of central excise, coimbatore vs titan india ltd. hosur]. the tribunal has rejected the claim of the revenue for classification under cet sub-heading 7101.80 as waste and scrap of precious metals. 3. following the ratio of the above decision, we set aside the impugned order of classification and allow the appeal.
Judgment:

Per Jyoti Balasundaram

The appellants herein are engaged in the manufacture of watches in their Watch Division. They also undertake the process of gold plating of watch cases and straps. During the course of gold plating, titanium and gold get deposited in the walls of the chamber and these are peeled off. Besides, there is also gold in the batch solution and on the copper wire in which the components are tied. This gold is recovered and cleared to their own Jewellery Division for melting/refining and conversion into gold ingots/bars. According to the Department, recovered gold is waste and scrap of gold classifiable under CET sub-heading 7101.80, while according to the assessees, the item falls for classification under CET sub-heading 7101.39

2. We have heard both sides against the classification of gold recovered during the course of gold plating. We find that in the case of the same assessees, the Tribunal has accepted their claim for classification under 7101.39, as seen from 2001 (134) E.L.T. 292 [Commissioner of Central Excise, Coimbatore Vs Titan India Ltd. Hosur]. The Tribunal has rejected the claim of the Revenue for classification under CET sub-heading 7101.80 as waste and scrap of precious metals.

3. Following the ratio of the above decision, we set aside the impugned order of classification and allow the appeal.