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Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 1995 (6) TMI AT This

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1995 (6) TMI 34 - AT - Central Excise

Issues Involved:
1. Classification of elastic rail clips under the Central Excise Tariff.
2. Invoking the larger period for limitation.
3. Justification for imposing a penalty.

Summary:

1. Classification of Elastic Rail Clips:
The primary issue was whether elastic rail clips should be classified u/s 26AA(ia) and Item 25(11) during the respective periods or u/s 68 CET as articles of iron and steel. The appellants argued that these goods should be classified under 26AA(ia) and Item 25(11) as pieces roughly shaped by rolling or forging of iron or steel. The Department contended that the goods were fully finished articles of iron or steel falling under Item 68 CET. The Tribunal noted that previous decisions had classified rail clips under Item 68 CET but had not considered the Supreme Court judgment in TISCO v. Collector of Central Excise and other relevant judgments. The Tribunal, upon reconsideration, held that rail clips, given the manufacturing process involved, should be classified under Item 26AA(ia)/25(8) CET as pieces roughly shaped by forging.

2. Larger Period for Limitation:
The issue of whether the larger period for limitation was invokable was also considered. The Tribunal concluded that the circumstances of the case did not justify invoking the exceptional power u/s 11A CES Act to demand duty beyond the six months prescribed. This conclusion was based on the Supreme Court's decision cited by the appellants' counsel.

3. Justification for Penalty:
Regarding the imposition of a penalty, the Tribunal held that there was no case for imposing a penalty, given the view taken on classification and limitation. The appeals were disposed of accordingly, with the Tribunal ruling in favor of the appellants on all issues.

Conclusion:
The Tribunal ruled that elastic rail clips should be classified under Item 26AA(ia)/25(8) CET, the larger period for limitation was not invokable, and no penalty was justified. The appeals were thus decided in favor of the appellants.

 

 

 

 

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