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2016 (1) TMI 204 - AT - Central ExciseClassification of chemicals - assessee was classifying under CSH 2942 or 2943 - department was of the view that the said products are classifiable under CSH 3402, 3904 or 3906 and liable to duty - manufacturer of water treatment chemicals, boiler water treatment chemicals, fuel additives, fire side chemicals, resins etc. - extended period of limitation - Held that:- during the period from April 1993 to June 1995 classification lists being approved by the Revenue authorities, it cannot be said that the appellant had mis-stated or suppressed information with intention to evade duty. For the period from June 1995 onwards, we find that approval of classification list by the revenue authorities was done-away, but during the period in question i.e. from June 1995 to December 1997, there was a system of filing declaration of the products manufactured with cross reference of approved classification list. This system was introduced in order to check that none of the products are removed without appropriate classification and the knowledge of the Revenue. If that be so, we find strong force in the arguments put forth by the learned Counsel that the demands are hit by limitation. Since the issue involved in this case is of classification dispute, to our mind no penalty needs to be imposed on any of the appellants as the classification lists were approved by the department and there was no dispute during the material time. Accordingly, penalties imposed are set aside. Demand confirmed only for the normal period of limitation - Decided partly in favor of assessee.
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