1997 INSC 0703
                                                 Vee Kay Industries

                                                           Vs

                                     Collector of Central Excise, New Delhi

                           Civil Appeals No. 1820 of 1991 with No. 1619 of 1990

                                         (CJI J.S. Verma, B.N. Kirpal JJ)

                                                      23.07.1997

                                                        ORDER

1. Learned counsel for the appellant M/s Vee Kay Industries submitted that a Special Bench of five
members of Central Excise & Gold (Control) Appellate Tribunal (CEGAT) has considered the same
question and taken the view in favour of the assessee that elastic rail clips are classifiable under Item
26-AA(ia)/25(8) of the erstwhile Central Excise Tariff and not under Item 68. That decision of the
Special Bench of the Tribunal is Sikka Heat Treatment Centre v. CCE. [(1996) 81 ELT 628 (Trib)]
In that decision the two earlier decisions of the Tribunal by smaller Benches which have given rise
to these appeals reported in Paxma Axle & Springs (P) Ltd. v. CCE [(1990) 47 ELT 639 (Trib)] and
Vee Kay Industries v. CCE [(190) 50 ELT 520 (Trib)] have been overruled. The result therefore is
that the judgments which are challenged in these appeals have already been overruled by a larger
Bench of the Tribunal. That judgment was rendered on 24-6-1995. The learned Additional Solicitor
General on instructions informs us that the Department has accepted the Tribunal's latter decision in
Sikka Heat Treatment Centre and, therefore, the same has not been challenged before this Court.

2. Apart from the fact that the Department itself has accepted the Tribunal's view taken in Sikka
Heat Treatment Centre' we also find that this is the more appropriate view to take in the facts of the
case. These appeals have, therefore, to be allowed.

3. Consequently, these appeals are allowed. The impugned judgments of the Tribunal are set aside.
No costs.