2007 (3) TMI 440 - AT - Central Excise

Summary

Issues involved: Classification of goods under different headings, demand notice beyond normal time-limit, suppression of information in classification list.

Classification of goods: The appellants had filed a classification list correctly describing the impugned goods under Heading 85.35, which was duly approved by the proper officer. The Department later issued a demand notice seeking classification under Heading 85.37 for a period beyond the normal time-limit of six months. The adjudicating Commissioner held that the appellants had not disclosed the composition of the product in their classification list, amounting to suppression. However, the Tribunal found that the classification list only required the correct description of the goods and did not mandate declaration of composition. The authorities did not seek further details on composition before approving the classification under Heading 85.35. Citing a Supreme Court decision, the Tribunal concluded that there was no justification for demanding duty under a new classification for the extended period due to lack of wilful suppression by the appellants. Therefore, the impugned order was set aside, and the appeal was allowed.

Suppression of information: The Department invoked the extended period of limitation based on the alleged suppression of composition details in the classification list by the appellants. However, the Tribunal held that the classification list requirement was limited to providing a correct description of the goods, not composition details. Since the authorities did not request additional information on composition before approving the classification under Heading 85.35, the Tribunal found no wilful suppression by the appellants. Citing a relevant Supreme Court decision, the Tribunal concluded that the Department could have requested the catalogue from the assessee if needed, and the absence of such a request did not establish suppression. Therefore, the Tribunal ruled in favor of the assessee on the ground of limitation and set aside the impugned order, allowing the appeal.