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2019 (9) TMI 18 - AT - Central ExciseSSI exemption - change of classification of the products - job-work - N/N. 08/2003-CE dated 01.03.2003 - the learned Commissioner (Appeals) had given his findings on classification primarily on the ground that Heading 5911 is a residual entry and covers goods which cannot be classified under any of the Headings of Section XI of the Central Excise Tariff Act, 1985 - HELD THAT:- The said Heading covers textile products and articles for technical use which would indicate that woven fabrics should be subjected to some process to convert fabric into textile product and articles for technical use, which was found absent in the case of the appellant’s product. Rejecting the contention of the appellant that it had earlier intimated to the department regarding manufacturing of woven fabrics of Synthetic Filament Yarn falling under Chapter 5406 vide its letter dated 29th April 2004 and the certificate issued by the buyers concerning use of woven fabrics for industrial application, he opined that nowhere appellant had pleaded that Synthetic Woven Fabrics were intended for industrial purpose and basing on the statement of witness, primarily on the statement of proprietor Mr. Hrishikesh Mimani that they had mistakenly classified the product under Chapter 59 instead of Chapter 54, he confirmed the findings in the Order-in-Original that SSI exemption was not available to the appellant for which appropriate duty demand along with interest was made. Invocation of extended period of limitation - period from April, 2003 to July, 2004 - HELD THAT:- Admittedly show-cause notice was issued on 17.04.2006 which was not within the normal period prescribed at the relevant time and the learned Commissioner (Appeals) had confirmed the justification of invocation of extended period by observing that proprietor had admitted that they had misclassified the product and therefore a clear case of suppression was established against the appellant, contrary to his own observation and acknowledgement in the order itself that vide its letter dated 29.04.2004 appellant had informed to the department that it was claiming benefit of exemption Notification No. 08/2003-CE dated 01.03.2003 and was engaged in the manufacture of woven fabrics of synthetic filament yarn falling under Chapter 5911 - no case of suppression of facts to evade duty is made out to justify imposition of duty liability against the appellant to invoke extended period though no error is noticed in the Order-in-Appeal in respect of classification of the product cleared by the appellant. Appeal allowed - decided in favor of appellant.
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