2010 (2) TMI 1000 - AT - Central Excise

Summary

Issues:
1. Claimed amount deposited within one year of show cause notice
2. Balance amount claimed barred by limitation
3. Classification of product under heading 8433.00
4. Department's knowledge of product classification
5. Grant of stay on demand invoking extended period of limitation

Analysis:

1. The appellant claimed to have deposited an amount within one year of the show cause notice, totaling Rs. 1,91,674. The learned Advocate argued that the remaining balance was time-barred and not justifiable for invoking the extended period of limitation, as the Department was aware of the product's classification under heading 8433.00 from the outset.

2. The appellant contended that the Department had not objected to the product's classification as parts of Harvesting Combines and Threshing Machines under sub-heading 8433.00 at the time of the Registration Certificate issuance. This knowledge was crucial, and the Department's awareness of the classification negated the grounds for invoking the extended period of limitation based on suppression of facts.

3. The Central Excise Tariff of India defines sub-heading 8433.00, which includes Harvesting or threshing machinery, among other items. However, the description does not explicitly cover parts of Harvesting Combines and Threshing Machines. The Department's lack of objection to the classification during the Registration Certificate issuance further supports the appellant's position.

4. The Tribunal noted that the Department was aware of the appellant's claim regarding the product's classification under heading 8433.00 since the Registration Certificate issuance. The Department's failure to seek clarification or details immediately after the classification lists were filed raised doubts about the grounds for invoking the extended period of limitation based on suppression of facts.

5. Considering the Department's knowledge of the product classification and the lack of objection at the Registration Certificate stage, the Tribunal found prima facie grounds to grant a stay on the demand related to the period beyond one year from the show cause notice issuance. Consequently, the Tribunal allowed the application, staying the pre-deposit requirement until the appeal's final disposal.