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2010 (12) TMI 989 - HC - Central ExciseExtended period of limitation - suppression, misstatement or misdeclaration - clasification of yarn manufactured by assesse - Chapter sub-heading No. 54.02 or Chapter 56 - Held that:- In the light of the facts noted it is apparent that the assessee, initially, was classifying the goods under Chapter sub-heading No. 54.02. However, upon noticing that the Customs authorities were clearing such yarn under Chapter 56, the assessee, sought clarification in this regard was advised that the yarn manufactured by it merits classification under Chapter No. 56 of the Tariff Act. Accordingly, the assessee, after giving intimation to the department, started effecting clearances under Chapter 5606.06 of the Tariff Act. In the light of the aforesaid facts it cannot be said that there was any suppression, misstatement or misdeclaration on the part of the assessee. It is not in dispute that the Customs authorities were clearing such goods under Chapter 56 of the Tariff Act. The assessee, therefore, was entitled to entertain a bona fide belief that the product manufactured by it would fall under the said sub-heading. It is not possible to state that the Tribunal has committed any legal error in holding that the extended period of limitation could not have been invoked. In favour of assessee.
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