TMI Blog2000 (6) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... the Rules and penalty of Rs. 10,00,000/- on the appellant in Appeal No. E/2934 namely Transcon International as well as Polybelt Technologies in Appeal no. E/2933. He ordered recovery of interest under section 11AB. He also imposed penalty of Rs. 10,00,000/- on the appellant Kamal K. Kacholia in appeal no. E/2935 and Rs. 5,00,000/- on the appellant Rajan Nawal in appeal no. E/2955 and Rs. 3,00,000/- on the appellant Nirmaljeet Singh Panna in appeal E/3498 under rule 209A. He also imposed a fine of Rs. 5,00,000/-. Today applications for stay are filed under section 35F of the Central Excise Act. During the course of the argument it was found that the appeals themselves could be disposed of on a short point and the matter is sought to be rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of classification adjudicating authority namely the Commissioner at paragraph 87 in his order has followed the opinion of the Deputy Chief Chemist as well as the deposition of the Manager of Excise. He also refers to National Test House findings. In the same paragraph he has held that the assessee had suppressed the facts and misled the department by filing wrong classification list. He also referred to various other submissions raised by the appellant assessee before him and confirmed the demand. Hence the present appeals. 3. Shri V. Sridharan, Advocate, appeared along with Shri R. Nambirajan, Advocate to the appellants. Shri K.M. Patwari, JDR appeared for the department. 4. Shri Sridharan contended that the finding given by the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of the Tribunal in the case of Wash Udyog, Sawantwadi - 1987 (31) E.L.T. 73 which reads as under : Interpretative Rule 3(b), which is the relevant rule applicable in this case, does not lay down the principle of classification on the basis of predominant content but on the basis as to which of the component gives the goods their essential character. Thus, it is not the bulk but the property of giving the essential character which is the criterion applicable to the case before us ...... . He, no doubt, invited our attention to the test certificate of National Test House but states fairly that it may not help his case. He also invited our attention to the extracts from the book Engineering Materials and Designs by J.J. Robinson on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alled the performance or matched the versatility of the modern flat belt with a chrome leather driving face. Soft, pliable and without any real strength of its own, chrome tanned leather is extraordinarily durable and does not slip. It has three times the frictional grip of rubber and canvas even when oily, dusty or dirty. This high coefficient of friction makes complicated belt profiles quite unneces sary and belts made from nylon or terylene bonded to chrome leather drive at the staggering efficiency of 98 per cent. In other words, belts of this construction are as efficient as the electric power supply itself. So good is the embrace of chrome leather that the belt will not slip even on drives with a minute are of contact. Velocity rati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter 3926.00, and full exemption from payment of duty under notification no. 53/88 (Articles of Plastics), whereas similar belts manufactured by M/s. N.T.B. were classified under chapter 42 or chapter 59 depending upon the material used, and duty was being paid on the same. Samples of the said belts were drawn and sent to Dy. Chief Chemist for testing. The Dy. Chief Chemist opined that the belt would merit classification as articles of leather/rubber, depending upon the material used and would fall under chapter 42/40 respectively. Thus, it is clear from the test resuIt that M/s. Transcon and M/s. Polybelt had suppressed the facts and misled the deptt. by filing wrong classification lists with an intent to evade the payment of Central Excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y filing wrong classification list with an intent to evade the payment of Central Excise duty and proviso to section 11A(1) of Central Excise Act, 1944 is applicable in this case and I hold accordingly. 6. The Commissioner being the adjudicating authority has quoted that the Deputy Chief Chemist has opined that the belt would merit classification as articles of materials used. He states further that it is clear from the test result that the appellants M/s. Transcon in Appeal No. 2934 and M/s. Polybelt in Appeal No. 2933 have suppressed the facts and misled the department in filing wrong classification list with an intent to evade duty. It is true that in the said paragraph the Commissioner has taken note of the deposition made by Manager ..... X X X X Extracts X X X X X X X X Extracts X X X X
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