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TMI Blog2023 (4) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... ting authority has put entire emphasis on the clarification issued by Chemical Examiner that against the question raised before the chemical examiner that whether the product compound of PBT can be reported as polyester chips or not. The chemical examiner has answered as above that the sample is other than pure PBT and other than pure nylon chips. From the above clarification, it is also clear that even though both the products are not pure PBT and pure nylon chips but both are pre-dominantly consists of more than 70% of polyester and nylon. It is settled law that any chemical compound is classifiable on the basis of its active ingredient only. In the present case, since both the products are admittedly pre-dominance of Polyester and Nylon, the same are classifiable under 3907 and 3908 respectively. Undisputedly, the form of the product is in chips so therefore, both the products are clearly qualified as polyester chips and nylon chips being constituent of pre-dominantly polyester and nylon respectively. The classification of the product decided by the commissioner will have no adverse effect on the eligibility of the notification so long the product falls under chapter heading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Limited, S. No. 309, Village-Mokshi, Sankarda Savli Road, Tal.-Savli, Distt.-Vadodara under Section 11AB of Central Excise Act, 1944 on the Central Excise duty amounting to Rs.2,88,58,033/- confirmed and demanded above. v.) I impose penalty of Rs. 2,88,58,033/-( Rupees Two Crore eighty eight lakhs fifty eight thousand and thirty three) upon M/s. Axel Polymers Limited, S. No. 309, Village-Mokshi, Sankarda Savli Road, Tal.-Savli, Distt.-Vadodara under Section 11AC of the Central Excise Act, 1944, read with Rule 25(1) of the Central Excise Rules 2002. However, in terms of first and second proviso of Section 11AC of Central Excise Act, 1944, the amount of penalty of Rs. 2,88,58,033/- is reducible to 25% subject to the fulfilment of conditions specified in said provisos by M/s. Axel Polymers Limited, S. No. 309, Village-Mokshi, Sankarda Savli Road, Tal.-Savli, Distt.-Vadodara. vi.) I do not impose penalty under Rule 26 of the Central Excise Rules, 2002. The adjudicating authority denied the exemption notification number 4/2006-CE dated 01.03.2006 as amended by notification 37/2006-CE dated 20.07.2006 in respect of the excisable goods manufactured by the appellant namely compoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as informed to the department vide their letter dated 29.12.2006 . 2.1 He submits that the issue is of pure question of interpretation of relevant entries of notification therefore, there is absolutely no suppression of fact on the part of the appellant accordingly, the demand for extended period is not sustainable. He placed reliance on the following judgments:- UNION OF INDIA V/s. INTER CONTINENTAL (India)- 2008 (226) ELT 16 (S.C.) INTER-CONTINENTAL (INDIA) V/s. UNION OF INDIA- 2003 (154) ELT 37 (Guj.) TATA TELESERVICES LTD V/s. CC- 2006 (194) ELT 11 (S.C.) GUJARAT POLYCRETE PRIVATE LTD. V/s. CCE, AHMEDABAD 1999 (114) ELT 843 (Tribunal) Continental Foundation JT Venture Vs CCE Chandigarh- 2007 (216) ELT 177 (S.C) Larson Turbo Ltd Vs CCE, Mumbai II 1998 (103) ELT 404 (Tribunal) CCE, Mumbai-III Vs Narendra Kumar Co. 2008 (232) ELT 866 (Tri-Mumbai) CCE C, Guntur Vs Crane Betel Nut Powder Works 2007 (208) ELT 376 (Tri-Bang.) Oswal Agro Mills Ltd. Vs CCE 1993 (66) ELT 37 (S.C) Anand Nishikawa Co. Ltd VS CCE, Meerut 2005 (188) ELT 149 (S.C) Polyester Moulding Co. Pvt Ltd. Vs CCE Pune 2001 (129) ELT 699 (Tri-Mum) Poddar Pigments Ltd Vs CC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is glass fibre reinforced nylon composite chips (Nylon Compounded Chips). This item can t be used in textile intermediates From the above chemical examination test report, it is clear that in respect of polyester chips the percentage of polyester is 70.65% and in respect of nylon chips the percentage of nylon is 70.45% remaining portion in both the product is glass fibres and additives. As per the composition, the product is pre-dominantly consisting of polyester and nylon respectively. The adjudicating authority has put entire emphasis on the clarification issued by Chemical Examiner that against the question raised before the chemical examiner that whether the product compound of PBT can be reported as polyester chips or not. The chemical examiner has answered as above that the sample is other than pure PBT and other than pure nylon chips. From the above clarification, it is also clear that even though both the products are not pure PBT and pure nylon chips but both are pre-dominantly consists of more than 70% of polyester and nylon. 4.1 It is pertinent to note that the chemical examiner has not answered that even though it is not pure PBT or pure nylon chips, the same wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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