Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2021 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (10) TMI 231 - AT - Central ExciseClassification of goods - Autoclave - Glass bead Sterilizer - Steam Clave - Hot Air Sterilizer - Autoclaves classifiable under Central Excise Tariff Heading 841910 (up to February 2005) and 84192010 (from March 2005) as held in the impugned order or under 901800 (up to February, 2005) and 90184900 (from March, 2005) or not - Glass Bead Sterilizer, Steam Clave and Hot Air Sterilizer classifiable under 841910 (up to February, 2005) and 84192010 (from March, 2005); or under 9018 - extended period of limitation - penalty - HELD THAT:- Rule 2 deals with incomplete and unfinished articles and articles mixed with other articles and is not relevant to this case. Rule 3(a) states that a specific description prevails over the general description. According to the appellant, this Rule is in its favour because ‘Dental equipment’ is a more specific description over ‘autoclaves and sterilizing equipment’. According to the Revenue, ‘Sterilizing equipment’ is a more specific description of the nature of the goods and not ‘Dental equipment’. This Rule does not resolve the issue in favour of either side. Rule 3(b) deals with composite articles and hence is irrelevant to this case. Rule 3(c) states that if there are two or more equally valid classification, the last of such headings shall prevail. Rules 4 and 5 are not relevant to this case. None of the Rules of Interpretation satisfactorily resolve the dispute at hand. While the Central Excise Tariff has only Rules of Interpretation, the Harmonized System of Nomenclature based on which the Tariff is drafted, also has detailed explanatory notes explaining the scope of each heading - The Harmonised System of Nomenclature explains that 8419 includes not only autoclaves for industrial purposes but also those used for installation and operation theatres, etc. - the four goods manufactured by the appellant are classifiable under 8419 as asserted by the Revenue and are chargeable to appropriate duty. Therefore, on merits, the contention of the Revenue should be accepted. Extended period of limitation - HELD THAT:- The allegation of suppression of facts by the appellant in the show cause notice is completely unfounded. The other elements such as fraud, collusion and wilful mis-statement have not even been alleged in the show cause notice. Therefore, the demand cannot be raised by invoking the extended period of limitation - As far as the normal period of limitation is concerned, the appellant submits that although they have been contesting that classification on merits they have already paid the differential duty for the normal period of limitation from September 2006 to March 2007 along with interest. Imposition of penalty - HELD THAT:- The elements required for imposing penalty under Section 11AC is the same as those required for invoking the extended period of limitation under proviso to section 11A which is already found to be non-existent in this case. In view of the above, the penalty under Section 11AC needs to be set aside. The impugned order is modified to the extent it upholds the demand and interest as applicable within the normal period of limitation but set aside the demand for the extended period of limitation. The penalty imposed under section 11AC read with Rule 24 is also set aside - Appeal allowed in part.
|