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2009 (11) TMI 729 - AT - Central Excise
Issues involved: Confirmation of demand on tea clearances u/s Notification No. 41/99-C.E. and imposition of penalty.
Confirmation of demand on tea clearances: The demand of Rs. 48,778/- on tea clearances was confirmed due to the failure of the assessees to file the required undertaking as per Notification No. 41/99-C.E. The notification stipulates that the benefit of exemption from duty starts from the date of undertaking with the Assistant Commissioner/Deputy Commissioner of Central Excise. The Commissioner (Appeals) upheld a penalty of Rs. 5,000/-, albeit reducing the amount initially imposed by the adjudicating authority. Imposition of penalty: The Tribunal referred to a previous decision in the case of Golden Dew Tea Factory & Ors. v. CCE, Coimbatore, where it was established that merely filing a classification list claiming the benefit of the notification is not sufficient to warrant the exemption. However, considering the circumstances of the case, the Tribunal found merit in the assessees' argument that no penalty should be imposed. The assessees had filed a declaration for the previous financial year and believed it would suffice for the subsequent year. They also submitted a classification list clearly indicating their intention to avail the benefits of Notification No. 41/99. Consequently, the penalty imposed on the assessees was set aside, while the demand was upheld.
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