Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 6 - CESTAT NEW DELHIClassification of goods - chewing tobacco and preparation containing chewing tobacco (kamam) - whether classified under 24039960 as “tobacco extracts and essence” or is to be classified under 24039920? - Held that: - the impugned goods are classifiable under sub heading 240399.20 as held by the lower authorities. - Hon’ble Supreme Court in the case of Dharampal Satyapal Vs. CCE New Delhi [2005 (4) TMI 66 - SUPREME COURT OF INDIA] classified the item under “tobacco and preparation of chewing tobacco” under sub heading 2404.49/2404.40, the case does not apply in the facts of present case as it was delivered in the context of the Central Excise Tariff which was different at the relevant time. Extended period of limitation - Suppression of facts - Held that: - The Commissioner (Appeals) held them guilty of suppression for not taking “initiative” and not consulting the department if they had any doubt while the appellants never stated that they had any doubt. In fact they have claimed that they were clearly of the view that their goods were classifiable where they classified them. The Commissioner (Appeals) has not mentioned anywhere as to what they suppressed which was required to be disclosed as per law. Not taking suo moto initiative has never been a valid ground for sustaining charge of suppression - The very fact that they have been paying duty as per Section 4 also goes to show that prima facie they had no intention of hoodwinking the department - demand restricted to normal period - The adjudicating authority is directed to re-quantify the demands accordingly. Penalty - Held that: - There is no justification to impose any penalty, this being a classification dispute. Appeal allowed - decided partly in favor of appellant.
|