2006 (11) TMI 387 - AT - Central Excise

Summary

Issues involved:
Appeals against order of Commissioner (Appeals) demanding Special Excise Duty and imposing penalties on company and individuals.

Details of the Judgment:

Issue 1: Classification of Goods under Chapter Heading 2710.19
- Appellants imported propylene tetramer and propylene trimmer classified under Chapter Heading 2710.14, later held to be under Chapter Heading 2710.19 liable to Special Excise Duty at 16%.
- Appellants claimed goods not suitable for use as fuel in spark ignition engines, citing flash point and usage criteria.
- Department alleged misclassification and non-payment of Special Excise Duty, invoking extended period for deliberate mis-declaration.
- Appellants argued goods not meeting criteria for Chapter Heading 2710.19, referenced CBEC Circular and previous Tribunal decisions.
- Tribunal found no evidence goods suitable for use as fuel, upheld appellants' classification under Chapter Heading 2710.14 or as exempt Naphtha.

Issue 2: Limitation on Demand
- Appellants contested limitation, stating no suppression or mis-declaration alleged by customs during provisional assessment.
- Tribunal noted absence of allegations by customs, held demand hit by limitation.

Issue 3: Penalty Imposition
- Penalties imposed on company and individuals challenged.
- Appellants argued lack of relation to penalty imposed on another entity, absence of party in show cause notice, and reversal of Cenvat credit.
- Tribunal observed errors in penalty imposition, including on uninvolved individual and different entity, and lack of corrigendum for apparent typographical mistake.
- Penalty provisions under Section 11AC not applicable to appellants.

Conclusion
- Tribunal set aside Commissioner's order, allowed the appeals.
- Judgment pronounced on 15-11-2006 by K.K. Agarwal, Member (T).