TMI Blog2019 (10) TMI 1289X X X X Extracts X X X X X X X X Extracts X X X X ..... of purification process applied to terephthalic acid, it has been stated that Purified Terephthalic Acid manufactured by the appellant can be deemed as Pure Terephthalic Acid as used interchangeably and synonymously with the term Purified Terephthalic Acid in the sense of the highest grade of terephthalic Acid as understood in industry as well as standards globally. It is a settled position of law as also held by the Hon ble Supreme Court in the case COMMISSIONER OF CUSTOMS (IMPORT) , MUMBAI VERSUS M/S KONKAN SYNTHETIC FIBRES [ 2012 (3) TMI 273 - SUPREME COURT] that in a fiscal or taxation law that while ascertaining the scope or expression used in a particular entry, the opinion of the expert in the field of trade who deals in thos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o as to provide effective rate of 8% excise duty as against 16%. Accordingly, the appellant started discharging central excise duty of 8% on Purified Terephthalic Acid (PTA), by availing the aforesaid exemption benefit with necessary disclosures in the monthly returns. Show cause notice dated 25.07.2007 was issued on the ground that the goods cleared by appellant was Purified Terephthalic Acid and not Pure Terephthalic Acid inasmuch as terephthalic acid manufactured by them underwent purification process by which it reached 99.8% purity approximately. The Ld. Commissioner after following the due process of law confirmed the demand by invoking extended period of limitation with the allegation of wilful suppression and also imposed equi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the certificate dated 16.11.2018 obtained by the appellant from the Industry Institute Partnership Cell, University of Jadavpur on the subject which has been given after due analysis and testing of appellant s product which states that there is bound to be insignificant percentage of impurity of 0.2 % / 0.3% in highly purified Terephthalic Acid and that the goods manufactured by the appellant is the highest obtainable grade of PTA. 5. On the contrary, the Ld. Spl.Counsel for the Revenue submitted that it is an admitted fact that the goods manufactured are not 100% Terephthalic Acid and therefore, the very requirement of exemption notification has not been fulfilled by the appellant inasmuch as the notification provides exemption only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lysis of purification process applied to terephthalic acid, it has been stated that Purified Terephthalic Acid manufactured by the appellant can be deemed as Pure Terephthalic Acid as used interchangeably and synonymously with the term Purified Terephthalic Acid in the sense of the highest grade of terephthalic Acid as understood in industry as well as standards globally. We note that it is a settled position of law as also held by the Hon ble Supreme Court in the case Comm. of Customs vs. Konkan Synthetic Fibres 2012 (278) ELT 37 (SC) that in a fiscal or taxation law that while ascertaining the scope or expression used in a particular entry, the opinion of the expert in the field of trade who deals in those goods should not be ignored, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by them with the Department, this is not the case of any suppression more so ever when the question of classification is involved. Therefore the extended period of limitation is not available to the Department and on the same count, penalty imposed on the appellant is also not sustainable and hence set aside. 7.5 The instant appeal is thus allowed by way of remand for limited purpose, in terms of the directions given above. It is needless to state that the Ld.Commissioner will give adequate opportunity to the appellant of being heard keeping in view of the principles of natural justice and endeavour shall be made to decide the issue expeditiously, preferably within a period of three months time from the date of receipt of this order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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