2008 (4) TMI 646 - AT - Central Excise

Summary

Issues: Classification of electric control panel under Heading 8534 or 8537, Time limitation for raising demand

In this case, the appellant, engaged in manufacturing dairy machinery, faced a dispute regarding the classification of electric control panels. The appellant argued that when these panels were supplied along with cleaning in place units/systems (C.I.P.) as part of the purchase order, they should be classified under Heading 8534, which covers C.I.P. The duty was being paid under Heading 8537 when the control panels were cleared separately, as it specifically covers control panels. The duty demand was raised beyond the normal period of limitation, which was challenged by the appellant. The appellant had mentioned the control panels as part of C.I.P. in the duty paying documents and RT-12 return, which were assessed by the Central Excise officer. The Tribunal noted that the entire case of the Revenue was based on facts already disclosed to them, and the demand raised after the limitation period was considered a 'change of view' rather than a case of suppression or intention to evade duty. Therefore, the demand raised beyond the limitation period was held to be barred by limitation, and the appeal was allowed on this ground alone.

The Tribunal emphasized that the duty demand raised for the period of February and March '94 was issued beyond the normal period of limitation, which was a crucial aspect of the case. Despite the appellant clearing the control panels with proper documentation mentioning them as part of C.I.P., the Revenue's argument that the complete description was not provided did not hold weight. The Tribunal highlighted that the Revenue was aware of the facts as they were reflected in the documents submitted by the appellant and assessed by the Central Excise officer. The Tribunal agreed with the appellant's contention that the demand raised after the limitation period was unjustified, as it was not based on any new information or evasion of duty. This analysis led the Tribunal to conclude that the demand raised beyond the limitation period lacked legal standing and was therefore barred by limitation, resulting in the allowance of the appeal solely on this basis.