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2010 (12) TMI 729 - AT - Central ExciseSSI exemption - Brand name / trade name - Period of limitation - Book-Binding Cloth - In this case, there is no denial that Book-Binding Cloth was affixed with the monogram and name of the merchant-manufacturer or logo as the case may be, but only claim made is that the department has not shown the name of the brand/name of the manufacturer and to whom such brand name or logo belongs - in the absence of any specific evidence from the investigation to show that the appellants had deliberately mis-declared or suppressed the facts, invocation of extended period cannot be sustained - There is nothing to show that the appellants were asked to show that whether the padding undertaken by them was as per the definition in the notification or not - Demand sustained. Regarding classification - It was submitted by the learned advocate that delivery challan issued by the merchant manufacturers specified classification of the fabric under Chapter 52 and therefore the department cannot revise the classification in the hands of M/s. Vijay being a receiver and job worker without first reclassifying the goods at the end of the suppliers - in view of the fact that several processes padding, bleaching, dyeing etc in the case of fabrics amount to manufacture, each time a manufacturing process is completed, goods have to be classified afresh. Therefore, the contention of the learned advocate that the department cannot attempt to classify the goods afresh, has no force and has to be rejected Regarding penalty - They failed to declare what was received by them for undertaking processes like padding, calendaring etc was in fact leno/gauze fabrics and this led to availment of ineligible exemption - Held that: the total demand of duty is Rs. 20,51,369/- and penalty imposed is equal to the duty. In this case, penalty under Section 11AC has not been imposed and penalty has been imposed under Rule 173Q of Central Excise Rules, 1944 - Penalty is reduced to the extent of Rs. 5 lakhs - Appeal is disposed of
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