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2024 (2) TMI 75 - AT - Central ExciseClassification of goods - ball point pen ink - clandestine removal. Classification of ball point pen ink - HELD THAT:- Hon’ble Supreme Court of India has held that when the entries in the HSN and the said Tariff are not aligned, reliance cannot be placed upon HSN for the purpose of classification of goods under the said Tariff, in the case of Camlin Ltd. [2008 (9) TMI 1 - SUPREME COURT] - It was held that it is settled law that when the entries in the HSN and the said Tariff are not aligned, reliance cannot be placed upon HSN for the purpose of classification of goods under the said Tariff. One of the factors on which the Tribunal based its conclusion is the entries in the HSN. The said conclusion in the Order of the Tribunal is, therefore, vitiated and, accordingly, set aside - Once it is established that ball point pen ink attracts nil rate of duty, the confirmation of demand of clearance without payment on ball point pen ink and allegation of clearance of ball point pen ink by resorting to undervaluation does not sustain. Clandestine removal - HELD THAT:- The show cause notice that Revenue has compared total goods manufactured as reflected in balance sheet to the clearances effected on payment of duty by Thane unit and Revenue did not take into consideration goods cleared by Goa unit of the appellant whereas the balance sheet is common for both the units. Further, it is found that no investigation was carried out in respect of the balance amount on which duty is demanded such as dispatch particulars from the regular transporters, realization of sale proceeds and details from the regular dealers and buyers about receipt of finished goods. Therefore, relying on the ruling by Hon’ble Allahabad High Court in the case of Continental Cement Company [2014 (9) TMI 243 - ALLAHABAD HIGH COURT], it is held that the allegations of clandestine removal are not established - Once it is established that there was no requirement of payment of duty on ball point pen ink and there was no clandestine removal, the question of imposition of penalty on the appellant and the other appellants does not arise. The impugned order set aside - appeal allowed.
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