2005 (11) TMI 471 - AT - Central Excise

Summary

Issues: Classification of goods for duty under different headings, reliance on test reports, acceptance of declarations, limitation plea, interpretation of test report, appeal by Revenue.

Classification of Goods: The case involved the classification of goods cleared after job work, declared as printed labels under Heading 4821.00, but claimed by the department to be printed packing material under Heading 4811.00. The Jt. Commissioner dropped the proceedings citing lack of proof by the department and acceptance of the goods as labels by the noticee.

Reliance on Test Reports: The CCE (A) found that the goods were printed labels meant to be inserted in packaging, not packaging material itself. The declarations filed for previous years were accepted by the department, and the statements of the company's Director were considered without proper classification. The test report indicated the product as a "Paper Board Label" likely for toothbrushes, supporting the noticee's case.

Acceptance of Declarations and Limitation Plea: The declarations filed by the noticee for previous years were accepted, leading to a plea of limitation. The concurrent findings of two authorities, along with physical inspection of samples, supported the classification of the goods as labels rather than packaging material.

Interpretation of Test Report: The test report mentioned the product's composition, appearance, and printed matter, suggesting it as a label for toothbrushes. It did not explicitly state the product could not be used as packing material, but the report favored the noticee's case, emphasizing the likelihood of the product being used as a label.

Appeal by Revenue: Despite the Revenue's appeal, the Tribunal found no merit in the case. The grounds presented did not justify overturning the CCE (A)'s decision based on physical inspection of the goods. The Tribunal upheld the CCE (A)'s orders, ultimately rejecting the Revenue's appeal.