Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 502 - AT - Central ExciseClassification of goods - "process oil / speciality oil" cleared by the appellant - appellants classified the said goods under Heading 2710.50 during the material time and cleared the same on payment of duty. The Revenue entertained a view that the said product would merit classification under heading 2707.90 - whether or not the appellants are engaged in an activity which will amount to "manufacture" of a new excisable product in terms of Section 2 (f) of the Central Excise Act, 1944? - Held that: - It is not necessary that to categorise a process as manufacturing process that there should be necessarily a chemical change. Blending or compounding one mineral oil with another mineral oil can certainly result in a new product known in the market for specific use - In the present case, the product is known specifically in the tyre industry and it is a speciality oil known differently than the raw material which is nothing but furfural extracts - the processes undertaking by the appellant satisfy the criteria for "manufacture" attracting excise duty. Classification of goods - circular dt. 13.2.1989 - Held that: - The appellant's claim that Heading 2713 is not applicable to the impugned goods as the product is not oils obtained of distillation of high temperature coal tar, we note that said tariff heading covers similar products in which weight of aromatic constituents exceeds that of non-aromatic constituents. We are in agreement with the reasons elaborated in the circular dt. 13.2.1989 of the Board and note that appellant did not bring out by way any technical literature/support to contest the said finding. Accordingly, we uphold the classification adopted by the lower authorities - goods classified correctly under CTH 2707.90. Time limitation - Held that: - there can be no question of suppression, wilful misstatement etc. for invoking extended period of limitation for demand. In any case, no such allegation or evidence was recorded in the SCNs - the original authority should re-quantify the duty liability after consideration of the demands which are issued within normal period - matter on remand. Interest on differential duty - Held that: - Board vide master circular dated 10.3.2017 also states that the interest needs to be demanded and recovered following due process of demand and adjudication. As such interest liability without due notice and adjudication is not sustainable. Regarding the claim of appellant for MODVAT credit on inputs, the present proceedings are for only differential duty and hence this aspect is not for consideration. Appeal dismissed - decided against appellant.
|