TMI Blog2002 (4) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned Order. 2. Mrs. Reena Khair, Learned Advocate submitted that the Appellants manufacture various petroleum products; that after payment of duty they mix LDO with duty paid additives namely rosin and turpentine oil to obtain the impugned product MLO; that the mixing of 0.5% additives with 99.5% LDO is to increase the spreading capacity of LDO when spread on water body for forming a layer of oil with a view to cut off supply of Oxygen to Water surface on which mosquito larvae float resulting into death of larvae; that classification of MLO under 3808.10 is not proper as it does not contain any properties of insecticides; that after mixing LDO with additives, it remains petroleum products only as a very negligible percentage of ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned Advocate also mentioned that the demand for the period from April, 1995 to February, 1999 issued under show cause dated 24-3-2000 is time barred as the mixing of additive with LDO was within the knowledge of the Department from the beginning; that copy of classification list of MLO was submitted to the Department on 1-3-1978; that further the duty on LDO during the material period was higher than MLO and as such there can be no intention to evade payment of duty; that second show cause notice dated 2-6-2000 issued for demanding duty for the period from April, 1999 to March, 2000 is undoubtedly time barred as manufacturer and clearance of MLO was known to the Department; that the Range Superintendent had visited their premises befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs providing a more general descriptions; that accordingly MLO is covered in Heading 38.08 only; that Larvae as defined in the Concise Oxford Dictionary is the active immature form of an insect. Finally he submitted that the Order is not beyond the scope of show cause notice as the impugned products has been classified only under Heading 38.08 and there is change only in six digit that is where two dash (--) have been used which indicate that articles are sub-classification of a description of article; that demand is not time barred as the Appellants did not show any production; clearance or balance in stock as per RT 12 return; that the penalty is also imposable as they had not declared the manufacture and clearance of MLO. In reply the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had filed classification list in 1978 and some correspondence took place in 1981-82. Nothing has either been brought on record or pleaded before us that MLO as a product was mentioned in the classification lists subsequently filed. A manufacturer may manufacture a number of products at any given time. He may give up manufacturing of some products and may commence manufacture of some new products - In absence of any evidence on record to show that the Appellants were declaring either in classification list or classification declaration about MLO, the knowledge to the Department cannot be attributed. Similarly, in respect of second show cause notice also extended period of limitation is invokable as the Appellants neither showed any producti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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