9911796707
TMI Blog2014 (4) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... r dated 20.3.2013 classifying the goods in issue manufactured by the appellant under Tariff Item No.309 50 00 of the Central Excise Tariff Act, 1985; rejecting the claim for benefits under exemption Notification No.50/2003-CE dated 10.6.2003 on the ground that the manufactured goods are covered under Annexure - I to the Notification and hence, ineligible for exemption; confirming the demand of central excise duty of Rs.4.57,29,853/- under Section 11AB of the C.E.A.,1944 on the assessed value of Rs.44,39,79,164/- consumed captively during January 2011 to September 2011; assessing liability to interest under Section 11AB and Section 11AA of the 1944 Act; and imposing penalty of an equivalent to the duty demand, under Rule 25(1) of the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 18.1.2010; with an intention to evade payment of duty of Rs.4,57,29,853/-, proceedings were initiated and these proceedings culminated in the impugned adjudication order. 5. Ld. Counsel for the appellant has drawn our attention to the relevant Tariff Entries to support the contention that the so-called intermediate product (irregular blocks of polyurethane) also falls within Chapter Heading 39.21. Ld. Counsel has also drawn our attention to the fact that even before the adjudicating authority, reliance was placed on Board Circular No.10/1989 dated 10.2.89, which clearly spelt out the meaning -A block of regular geometric shape for the purpose of classification of a product under Heading No.39.21. Drawing on an opinion provided by the Dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leared without payment of duty in the factory itself for captive consumption in manufacture of polyurethane foam products, which are exempted goods under Notification No.67/95-CE under Tariff sub-headings 3921, 3926; but as in the case of the assessee, the duty on final product is not being discharged in view of the fact that the assessee has availed area based exemption under Notification No.50/2003-CE; the assessee is liable to duty on clearance of irregular blocks of polyurethane foam in the primary form, since this product is classifiable under Tariff sub-heading 3909 50 00 and not under 3920 or 3921 as asserted by the appellant. 7. On a careful analsis of the adjudication order we find that the Authority failed to advert to or analyse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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