TMI Blog2006 (7) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... Polyurethane Foam Sheets, Mattresses, Pillows, Sofa Seats, and Cushions etc. and during the relevant period were availing the benefit of Small Scale Notification No. 1/93,dated 28-3-93, as amended. Their factory was visited by the Central Excise Officers, who conducted various checks and verifications. As a result, final goods 18/202/1 worth Rs. 15.48 lakhs were found to be in excess and excisable goods valued at Rs. 1.50 lakhs involving Central Excise duty of Rs. 37,733.50 were short found The Revenue entertained a view that the various goods manufactured by the assessee were actually articles of Polyurethane Foam and were not entitled to the benefit of the said notification. They further entertained a view that since the final product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and every item, which stand approved by the proper officer; that the goods classified by them under Chapter 94 can never be called as articles of PUF as they are nothing but Mattresses, Sheets, Pillows, Sofa Seats and are specifically covered under Heading 94.01 and 94.04; that the exemption under Notification No. 1/93 was availed by them with the acceptance of the concerned Assistant Commissioner. In support of their above contention they referred to the interpretative Rules as also to Hyderabad Collectorate Trade Notice No. 10/92, dated 31-1-1992 reported in 1992 (58) E.L.T. (T9), clarifying that "Mattresses of expanded foam or sponge rubber made by moulding are classifiable under heading No. 9404 of the Schedule to Central Excise Tariff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods are classifiable under chapter 94 and not under chapter 39 and no evidence has been brought out clearly that the goods are nothing but articles of Polyurethane foam and that there was not bar in respect of goods falling under Chapter 94 for claiming exemption under the Notification No. 1/93, the exemption under Notification. No. 1/93 was not deniable to the Mattress, Pillows, Bolsters, Seat etc. manufactured by the assessee. In addition to mattress, cushion, seat covers etc. manufactured by the assessee. In addition to mattress, cushion, seat covers etc. the assessee also manufacturers Polyurethane Foam Sheets Polyurenthane Foam cut to size and shapes, Polyurethane Foam cut pieces and waste, which are correctly classifiable under Chapte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re cleared to Naval Depot for use on board, the Naval vessel the claim of Nil rate of duty under Notification was correct and was not deniable. The allegation that foam blocks meant for mattress cleared for Naval Depot should be accounted at the intermediate stage, when the same was not objected to in respect of blocks used for Mattress etc. for duty payment was not correct and maintainable. (d) The difference in the finished stock was due to the difference in accounting. The Foam Blocks which directly go into the Mattress are not at all marketable, and hence, they need not be specifically accounted for. However, since the assessees are clearing foam Sheets/Mattress, their accountability will come into picture only when they are properly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ested that mattress, pillows, cushions, bed sheets are nothing but articles of Polyurethane Foam. It has also been contested that show cause notice also proposed confiscation of excess found excisable goods and imposition of personal penalty under Rule 209A on the Director. The impugned order of the Commissioner is silent on the above two prepositions made in the notice. 7. After hearing both the sides, we find that the Revenue has not given any concrete reasons for adopting the classification of Mattress, Polyurethane etc. under Chapter 39 in preference to Chapter 94 where the same are specifically mentioned. Similarly we have seen the photographs produced on record by the Respondents and find that the PUF blocks, which the Revenue seeks ..... X X X X Extracts X X X X X X X X Extracts X X X X
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