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2004 (6) TMI 82 - AT - Central ExciseClassification of goods - Blind Rivets under Chapter heading 7318.29 or 8308.00 - Demand - Limitation - Extended period - Suppression - HELD THAT - In view of the Commissioner s finding of the impugned order we hold that the impugned goods are classifiable under Chapter Heading 8308.00 and are leviable to duty accordingly. There is no denial by the appellant that the goods are made of aluminium alloys and also that they are black mandrel blind rivets or tubular rivets. Rivets made out of aluminium alloy are not covered under Chapter 73 of CETA which covers product made out of iron and steel. These omissions and commissions on the part of the appellant constitute misdeclaration and therefore we hold that larger period of limitation has been correctly invoked. We therefore uphold the demand of Rs. 19, 31, 569/- (Nineteen lakhs thirty-one thousand five hundred sixty-nine) for the period March 1994 to July 1997. We are however unable to uphold the imposition of penalty u/s 11AC read with Rule 173Q of the Central Excise Rules 1944 for two reasons. For one thing Section 11AC has come into the statute book only w.e.f. 28-9-1996 whereas the demand pertains to a period prior to this date at least partly and for another a composite penalty u/s 11AC and Rule 173Q is not permissible. Interest on Section 11AB has also been demanded on the entire differential duty. The provision came into force on 28-9-1996 and is well settled that this provision has no retrospective effect. Therefore interest can be demanded only on that portion of the differential duty which relates to the period from 28-9-1996 to July 1997. We order that interest is payable by the appellant at the appropriate rate accordingly. Thus the appeal is partly allowed.
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