2008 (11) TMI 566 - AT - Central Excise

Summary

Issues involved: Classification of plastic woven wire meshes produced by knitting of filaments/wires of Polypropylene, PTFE, or ETFE under different headings pre and post 16-3-1995.

Classification Issue: The appellants initially classified the wire meshes under different headings and subsequently claimed classification under heading 59.01/59.11. The Revenue rejected this claim citing failure to challenge previous classifications. The Tribunal remanded the matter for examination, leading to a chemical test confirming the products as knitted fabrics. The Revenue proposed classification under sub-headings 3921.19 or 3926.90, resulting in a new case. The appellants argued that the Revenue exceeded the show cause notice scope, citing relevant case law.

Decision: The Tribunal upheld the appellants' argument, considering the date of the letter proposing the new classification as the fresh show cause notice issue date. As the products were found classifiable under a different heading post-testing, proper procedure required a new case initiation. The Tribunal ruled in favor of the appellants, emphasizing adherence to show cause notice limitations and procedural fairness.

Conclusion: The Tribunal's decision favored the appellants, emphasizing the importance of adhering to procedural requirements and show cause notice limitations in classification disputes, ensuring fairness and due process in excise duty matters.