TMI Blog2019 (7) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... the product cannot be classified under section 3917.31. Thus, the products being one or the other kind of pipe that have been classified under section 39 in the category of 3917.39. All flexible or non-flexible tubes, pipes and hoses are excisable goods even if they are classified under chapter heading 3917.31 having work pressure of more than 27.6 Mpa and are also excisable and the duty of 16% is to be levied as per Central Excise Act. These observations coupled with the admission of the appellant that the product is classifiable are sufficient for us to hold that except for the burst pressure criteria, any pipe, tube or hose is excisable goods. The burst pressure of appellant s product is admittedly less than 27.6 Mpa as is minimum req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 15.10.2009. 2. The relevant factual matrix for the present appeal is that the assessee/appellants are engaged in the manufacture and sale of PVC Suction Pipes, PVC Krishi Pipes, PVC Water Hose Pipe, PVC Water Stop, Rubber Hose and Rubber Sheet falling under Chapters 39 40. The appellants had obtained Central Excise Registration and submitting quarterly ER3 returns. The department observed that the appellants have crossed the SSI exemption limit of ₹ 1,50,00,000/- in the month of October 2008. Accordingly, through the aforesaid show cause notice, the department proposed for the above products to be classified under chapter heading 3917.39 of Central Excise Tariff Act. 1985 as excisable goods, accordingly the duty rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us to hold that the product cannot be classified under section 3917.31. Thus, the products being one or the other kind of pipe that have been classified under section 39 in the category of 3917.39. 6. The appellant has claimed non excisability of their product on two grounds (i) that the pipes are flexible and are made out of plastic recycled scrap and (ii) the tariff is silent about the burst work pressure less than 27.6 Mpa. We observe that Chapter note 8 of Chapter 39 reads as under: For the purposes of heading 3917, the expression tubes, pipes and hoses means hollow products, whether semi-manufactures or finished products, of a kind generally used for conveying, conducting or distributing gases or liquids (for example ribbed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king the extended period and levying of penalty, we are of the opinion that since the appellant is found to have wrongly classified his product to such a category to which no duty is leviable, as already observed above, the goods are otherwise excisable, the act is held as wilful intention to evade the duty. The said act of the appellant is definitely an act of misrepresentation of the facts. Therefore, we hold that adjudicating authority was right to invoke the extended period of limitation and the penalties are also held to have been rightly imposed. 9. In view of these findings, we uphold the order of the first appellate authority. 10. Consequent to discussion, as above, the appeal stands rejected. (Dictate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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