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2013 (9) TMI 166 - AT - Central ExciseClassification of Calcium Gluconate I.P. - The appellants claimed classification of the product under Chapter sub-heading 3003.30 (medicament) of schedule to the Central Excise Tariff Act, 1985 whereas the Department proposed to classify the same under CETH 2918.00 (organic chemical) - The product Calcium Gluconate IP manufactured by the appellants was classifiable under CETH 291800 only - Held that:- The chapter note of 29 clearly provided that separate chemically defined organic chemicals were to be classified under CETH 29 - the tariff heading 2918 when read with HSN and also the subsequent elaboration when introducing 8 digit tariff clearly shows that Calcium Gluconate comes under CETH 2918 only - In terms of the heading and the relevant chapter note of Chapter 29, Calcium Gluconate was classifiable under CETH 2918 only - Since we are not talking of Calcium Gluconate in unfinished or semi-finished form or we are not considering mixture or combination of Calcium Gluconate with something else Rule 2 would not be relevant - Rule 3 of Interpretative Rules would apply only when the goods prima facie classifiable under 2 or more headings - Once a specific headings for a product was found, the question of considering another classification or another heading does not arise and therefore Rule 3 of Interpretative Rules was not required to be applied at all. - Decided against the assessee. Invocation of Extended Period - Imposition of penalty - The Commissioner had gone beyond the remand order and appellants could not have been visited with the demand for extended period and penalty when the Department had not even appealed against the Order-in-Original limiting the demand to the period of limitation and not imposing any penalty – Therefore the penalty imposed on the appellants was set aside and also the demand for extended period. The demand as confirmed by the Commissioner in the earlier Order-in-Original dated 16-10-1998 for the period as applicable u/s 11A of Central Excise Act, 1944 was confirmed - The appellants shall also be liable to pay interest as applicable under Section 11AB of Central Excise Act, 1944 - penalties imposed on all the appellants were set aside.
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