- (1.) The respondent manufactures electrical insulation tapes. According to the respondent, the goods manufactured by it fall under tariff heading 85.47 of the schedule to the Central Excise Tariff Act, 1985. On the other hand, according to the petitioner, the goods fall under heading 39.19 of the same schedule. The Assistant Collector of Central Excise, therefore, gave notice to the respondent to show cause why the product should not be classified under heading 39.19. The assessee, in reply, pointed out that, in respect of its factory at Borivili, its claim that the goods were classifiable under heading 85.46 and that heading 39.19 had no application had been accepted by the Collector of Appeals. The Assistant Collector, however, did not accept the assessee's contention. He distinguished the order in respect of the Borivili plant on the ground that there the assessee's claim was for classification under heading 85.46 and not 85.47. He held, by his order dated 4-1-1988, that the products in question fell under heading 39.19.
(2.) The assessee preferred an appeal to the Collector (Appeals), who set aside the order of the Assistant Collector. He observed that reason given by the Assistant Collector for not following the order of the Collector of Central Excise (Appeals) on which the assessee had placed reliance before him was totally untenable. He set aside the order appealed against and directed the Assistant Collector to pass a reasoned and speaking order.
(3.) When the matter thus went back to the Assistant Collector he passed an order on 12-5-89, reiterating the conclusion that had been reached by his predecessor. He also did not give any reasons as to why the order of the Collector (Appeals) in respect of the Borivili plant was not followed. Not only this, the assessee had placed before him a decision of the Central Excise and Gold Control Appellate Tribunal (the Tribunal) in the case of M/s. Chetna Polycoats (P) Ltd., reported in (1988) 37 ELT 252, to a similar effect. The Assistant Collector distinguished it observing that the said decision had not been agreed to by the Department which had filed an appeal to the Supreme Court therefrom. The second order passed by the Assistant Collector was practically a repetition of the earlier order.;