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Classification of goods- Payment of Central Excise

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..... Dear Sir Department is raised SCN regarding the classification of the product. Now Assessee is paying Central Excise duty @6 % on MRP under chapter 30 . But department view is the product is covered under chapter 33 @12.5% BCD .Can we pay the difference duty as under protest to avoid the future liability .Pls explain the what are the procedure to pay the duty and How we can file ER1 return. .....

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..... - Reply By MUKUND THAKKAR - The Reply = please raised your querry in details. your product name and chapter head , sub heading etc.. - Reply By Rajagopalan Ranganathan - The Reply = Sir, You have classified the product as P or P Medicines under Chapter 30 of CETA, 1985 whereas the Department contends that it is classifiable as Cosmetics under Chapter 33 of CETA, 1985 . Therefore .....

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..... you have to find out what are the reasons for Department's stand and then only we can give suitable advice to you. - Reply By surya narayana - The Reply = You have to first of all get yourself confirmed whether the product manufactured and cleared on payment of duty @ 6% is a medicament or a cosmetic. Based on which you have to take a call about the payment of differential duty. If you are .....

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..... confident that it is a medicament, you need to reply the department with all technical information in support ou your claim that your product is a medicament. Regards Surya - Reply By Ganeshan Kalyani - The Reply = Technical and quality department in your organisation will help you to understand what the product exactly is and based on that you can arrive at to clarify them under correct head .....

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..... ing. If you are correct reply the department about your stand and prove them that they are incorrect. Otherwise you will have to take an appropriate call. Thanks. - Reply By Binu Karuthedath - The Reply = Sir Thanks for the reply . Based on the SCN, the first appeal has been confirmed the 12% and we have to file appeal .My query is 1) can i collect and pay the Excise Duty on hi .....

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..... gher Rate ie 12 % to avoid the future liability 2) What is the procedure to pay the Duty Under protest scheme 3) Can i collect the 12 % duty with out changing the existing HSN code under Chapter 30 - Reply By Ganeshan Kalyani - The Reply = Sir, it is at your discretion whether to pay at higher rate or not. If you are very sure about your classification then you should continue what yo .....

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..... u are doing now. Thanks. - Reply By KASTURI SETHI - The Reply = Sh.Binu Karuthedath Ji, Point-wise reply is as under:- 1. Yes. 2. You can pay Central Excise duty under protest under erstwhile Rule 233 B of Central Excise Rules, 2001. There is no corresponding Rule of erstwhile Rule 233 B but there is saving Section 38 A of Central Excise Act, 1944 . Go through la .....

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..... nguage of Section 38 A read with Sections 131 132 of Finance Act, 2001(14 of 2001 ).(inserted w.e.f. 11.5.2001). So Rule 233 B is legally valid for payment of duty under protest. You are required to intimate the jurisdictional Range Officer (in writing) by giving the complete details/facts/reasons for payment of duty under protest. Letter to be sent to the R.O. should be properly acknowl .....

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..... edged with date and sign and stamp of the Range Officer. Pl. ensure that the letter must be entered in the records (Receipt Register of R.O.) and have entry no of receipt register of Range Office. It is an absolutely must. You can win the case at any stage. If you pay duty under protest there will be no sword of time-bar limit for claiming refund.You must also mention the remarks, DUTY PAID UND .....

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..... ER PROTEST on the invoice. 3. You can collect duty from your buyer at higher rate. You must also mention changed classification of Chapter 33 on the invoice. The remarks, Under Protest will rescue everywhere. Pl. be aware that if you collect duty from buyer and if you win case at any stage, you will not get refund of duty paid in excess. It will be hit by the principles of unjust enrich .....

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..... ment and credited into the Consumer Welfare Fund, Govt. of India under Section 12 C of Central Excise Act . Normally cases of classification travel from CESTAT to Supreme Court and it consumes a considerable period. It may take 5 or 10 years. If the department loses the case in CESTAT, the matter will travel to the Supreme Court. So be prepared for that and ponder over pros. and co .....

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..... ns. of the case deeply. 4. By paying duty at higher rate under protest you can save interest and penalty in the event of losing case. After all later on you cannot recover the amount of interest and penalty from your buyers. Last but not the least for the time being follow the instructions of the department as you have lost the case at the first stage. Decision is yours. .....

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..... - Reply By Binu Karuthedath - The Reply = Dear KASTURI SETHI Sir Thanks for your reply . Your reply is very helpful to guide the Assessee - Classification of goods- Payment of Central Excise - Query Started By: - Binu Karuthedath Dated:- 21-3-2016 Central Excise - Got 8 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Managem .....

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..... ent India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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