2003 (11) TMI 482 - AT - Central Excise

Summary

Issues:
Classification of yarn under Chapter 5205.11, availability of benefit under Notification No. 6/2000.

Analysis:
The appeal before the Appellate Tribunal CESTAT, New Delhi concerned the classification of yarn and the availability of the benefit under Notification No. 6/2000. The appellants, engaged in the manufacture of yarn falling under Chapter 55 of the CETA, had filed a classification declaration under Chapter 5205.11, claiming the benefit of exemption Notification No. 6/2000 for duty payment at 8%, instead of classifying it under Chapter 56.06. The adjudicating authority rejected their plea, confirming a demand of Rs. 1,05,329/- and imposing a penalty of Rs. 10,000 under Rule 173Q, a decision upheld by the Commissioner (Appeals).

The appellants contended that their yarn was correctly classified under Chapter 5205.11, arguing that the benefit of the exemption notification should not be denied to them. However, it was noted that a previous order-in-original had already decided against the appellants, classifying the yarn under Heading No. 52.05. As this order was not challenged before the competent forum, it had become final. Consequently, since the yarn was held to be classifiable under Chapter 55, the appellants were deemed ineligible to claim any benefit under Notification No. 6/2000.

After hearing both parties, the Tribunal found no merit in the appellants' arguments. The impugned order of the Commissioner (Appeals) was deemed legal, and therefore upheld. Consequently, the appeal of the appellants was dismissed, affirming the decision regarding the classification of the yarn and the denial of the benefit under Notification No. 6/2000.