2004 (10) TMI 475 - AT - Central Excise

Summary

Issues involved:
Classification of Infraphil-HL 4307 under Tariff sub-heading 9018 or 8539 of the Central Excise Tariff, refund of deposited amount, dispense with payment of duty and penalty.

Classification Issue:
The dispute in this case revolves around the classification of Infraphil-HL 4307 by the Appellant, initially classified under Tariff sub-heading 9018 but later changed by the Department to 8539 of the Central Excise Tariff. The Appellant argues that the product was consistently classified under Tariff sub-heading 9018 as per Department's directions, a stance supported by the Commissioner (Appeals) in an earlier Order. The Appellant also highlights the deposit of Rs. 3,00,000 as per a Stay Order, which remains unreimbursed. The Tribunal notes the lack of discussion in the current Order-in-Appeal regarding the Department's change in classification after more than ten years. Considering the debatable nature of the issue and submissions from both sides, the Tribunal decides to dispense with the pre-deposit of duty and penalty, scheduling the case for regular hearing on a future date.

Refund Issue:
The Appellant seeks the refund of the deposited amount of Rs. 3,00,000 made in compliance with a Stay Order issued by the Commissioner (Appeals). Despite the Appellant's contention that the amount has not been refunded by the Department to date, the Tribunal's decision to dispense with the pre-deposit of duty and penalty may impact the resolution of this refund issue indirectly. The lack of specific mention of the refund status in the current judgment leaves this aspect open for further consideration and clarification in subsequent proceedings.

Dispensing with Payment Issue:
In light of the classification dispute and the Appellant's plea to be relieved from payment of duty and penalty, the Tribunal, after considering the arguments and submissions from both parties, decides to dispense with the pre-deposit of duty and penalty. This decision indicates a temporary relief granted to the Appellant pending further proceedings, with the case scheduled for regular hearing on a specified future date. The Tribunal's action aims to maintain fairness and procedural justice while the classification issue is subject to further examination and resolution.