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2017 (6) TMI 699 - AT - Central ExciseClassification of goods - boora - mishri - batasha - makhana - N/N. 57/2008 CE dated 05.12.2008 - whether the goods fall under CTH 17019100 or otherwise? - Held that: - CBEC has issued circular 879/17/2008-Ex.1 dated 05.12.2008, which clarifies that the process by which sugar is converted into boora, makhana, patasha, mishri, etc. is a manufacturing process under section 2(f) of Central Excise Act, 1944 and these items are to be classified under Central Excise Tariff heading 17019100. The N/N. 57/2008 also includes these items under Central Excise Tariff sub-heading 171019100 exempting them from duty of Central Excise w.e.f .05.12.2008. The process involved for conversion of sugar into subject goods is “manufacture” under section 2(f) of Central Excise Act, 1954 - When the process undertaken by the appellant amounts to manufacture, when the produce/goods are liable to be classified under Cental Excise Tariff Heading 17019100 and when there is no exemption Notification for such goods for the subject period, the goods are liable to duty for the period prior to 05.12.2008 - But the duty is payable for such goods only for the normal period as there were interpretation issues involved during the relevant period. The appellants, therefore, cannot be charged with “suppression or misrepresentation of the facts with an intention to evade payment of duty of Central Excise - demand confirmed for normal period. Interest - section 11AB of CEA, 1944 - Held that: - Tribunal's decision in case of Aarti Drugs Ltd Vs Commissioner, Central Excise Thane-II, [2015 (9) TMI 1206 - CESTAT MUMBAI], referred whereunder it held that where there is no mis-statement on the part of the assessee duty is payable only for normal period but interest is payable under section 11AB for the amount of duty upheld. For the purpose of quantification of demand, matter remanded to original adjudicating authority - appeal allowed by way of remand.
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