TMI Blog2009 (12) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... ng under Chapter 39. Officers of Central Excise Department visited the appellants unit and found that there was another unit by name of Santom Industrial Liners (SIL) belonging to the same proprietor Sri M.V. Francis operating in the same premises. They have used same workers and exchanged orders from one firm to another. Funds were also transferred in similar manner. They were maintaining parallel set of invoices. Their turnover exceeded Rs. 30 lakhs every year from 93-94 onwards. Santom Enterprises had transferred Rs. 3,00,000/- to Santom Industrial Liners on 27-11-97. Sri M. Francis in his statement inter alia stated that they have supplied goods worth Rs. 30 lakhs every year from 93-94 onwards as he was under impression that FRP/PP Stor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d machinery was also used for producing goods under both the names, adjudicating authority held that clubbing of clearances of Santom Enterprises and Santom Industrial Liners was in order. Commissioner (Appeals) vide order-in-appeal No. 108/2003 (H-III) C.E. dated 15-9-2003 held that impugned goods were classifiable under Chapter Sub-heading No. 3926.90 and eligible for consequential relief. And as the dispute involved interpretation of statutory provisions, no penalty or demand for interest was held to be sustainable. Thereafter, on department appealing to Hon ble CESTAT, vide impugned order, the matter has been sent back for de novo consideration. In the de novo consideration, learned Commissioner (Appeals), has distinguished the ratio as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) 1999 (112) E.L.T. 813 (Tri.-Mum.) (c) Graphite Vicarb India Ltd., v. CCE Aurangabad, 1997 (94) E.L.T. 154 (T) It is the submission that the show cause notice has alleged suppression of facts or mis-declaration on the part of the appellants and he submits that this is not so, because when the decision of the Tribunal on an identical issue were in favour of the appellants there could not be any suppression or mis-declaration on his part. For this proposition, he relies upon the following decisions of the Tribunal (a) CCE v. ITW Signode (I) Ltd., 2005 (179) E.L.T. 120 (b) Sparr Engineering v. CCE Bangalore, 2007 (207) E.L.T. 522 (Tri.-Bang.) It is his submission that appellant entertained bona fide belief that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ite Vicarb India Ltd. v. CCE Aurangabad (supra), were holding the fort which had laid down the law, that special purpose tanks used in chemical plants are classifiable under 3926.90 and are eligible for benefit of exemption under notification No. 132/86. It can be said that the appellant could have entertained a bona fide belief for classifying the product under 3926.90 in view of the law which has been settled by the Tribunal. Subsequently, law has been settled by the Hon ble Supreme Court (in 1998), holding that the tanks which are made of plastic even though for specific purposes, could be classified under 3925.10, on the facts of the case of KWH Heliplastics. 7. Without going into any of the arguments raised on merits, we find that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove, it is not clear as to whether the law is absolutely clear on the matter or not and the authorities also had to issue clarifications from time to time. In the circumstances, we think, invoking of Section 11A is not called for and levy of penalty in the present case would not be appropriate and the application of extended period of limitation is not justified. The order of the Tribunal is modified to this extent. In other respects the order of the Tribunal stands maintained. It may be seen from the above reproduced ratio of the Apex Court judgments that when an assesseee is entertaining a bona fide belief, in view of the law which has been settled at the relevant period, there cannot be any invocation of extended period. As we have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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