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2011 (7) TMI 972 - AT - Central ExciseWaiver of pre-deposit - SSI Exemption - Misdeclaration - Classification - held that:- Supreme Court in the case of Benara Valves Ltd. v. CCE (2006 (11) TMI 6 - SUPREME COURT OF INDIA) and Indu Nissan Oxo Chemicals Industries Ltd. v. Union of India (2007 (12) TMI 220 - SUPREME COURT OF INDIA), for determining the question of waiver from the requirement of pre-deposit of duty demand, interest and penalty, in accordance with the provisions of the proviso to Section 35F, two factors have to be kept in mind - the aspect of undue hardship to the appellant and imposing conditions for safeguarding the interest of revenue. Classification - held that:- Once the classification of a particular product been determined under Chapter 57, the question of its exact classification under Heading 57.01 or 57.02 or 57.03 has to be determined by applying sub-heading Notes 2(A) and 2(B) to Section XI, readwith Chapter Note 2 of this Section. Manufacture of the carpets - Classification - held that:- There is no dispute that taking the base fabric and exposed surface as a whole, it is jute fibre which pre-dominates by weight and it is on this basis that the Appellant, relying upon sub-heading Note 2(A) readwith Note 2 of Section XI plead that the carpets, in question, have to be treated as non-woven carpets of Jute falling under sub-heading 5703.20. Prima facie view - held that:- the carpets, in question, which are non-woven carpets with base/ground fabric of jute and exposed surface consisting of polyester/polypropylene fibre, are correctly classifiable as “other carpets” under sub-heading 5703.90. Appellant had at no stage disclosed the detailed manufacturing process of the carpets - appellant have not been able to establish prima facie case in their favour and hence this is not the case for waiver from the requirement of pre-deposit. - Stay granted partly.
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