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2010 (2) TMI 611 - CESTAT, BANGALOREClassification - nature of the goods declared as Alkyd Resins of CSH 3907.50 - assessee filed classification list revising the classification of the Alkyd Resins under CSH 3208.40 - show cause notice was issued to the assessee seeking to recover differential duty due on clearances of Alkyd Resins invoking larger period under Section 11A of the Central Excise Act, 1944 (the Act) alleging mis-declaration as regards the description Alkyd Resins - alleging mis-declaration as regards the description Alkyd Resins - product is bought and sold as insulating varnishes – Held that: - appellants’ intention is clear from their claim to the benefit of Notification 133/86 which prescribes rate of duty of 15% ad valorem (as against the tariff rate of 25%) which is available to only phenol formaldehyde falling under sub heading 3909.57 and not to chemically modified variety classifiable under CETA 3909.59 which we have held to be the appropriate classification - therein had not suppressed any material fact regarding the description of the goods, while in the present case, the appellants are guilty of concealment deliberate non-disclosure of the description of goods as chemically modified phenol formaldehyde - penalty is warranted in the facts and circum stances of the case. In the light of the above, we uphold the impugned order and reject the appeal - appellant could hardly contend that it discharged the onus of making correct declaration if it had with held the description which was commonly used in respect of the goods not only by itself but also by those from whom it bought or to whom it sold the products - penalty imposed in the impugned order is liable to be set aside - appeal is allowed in part.
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