2011 (6) TMI 511 - HC - Central Excise

Whether Tribunal is right in modifying the demand though respondent have wrongly classified under Chapter Heading 2705 instead of 2811.90 of 1st Schedule to 1985 Tariff Held that - issue would have direct bearing in deciding the issues arisen in these appeals and all these issues arise out of the very same order, it is settled law that these issues cannot be bifurcated and decided by this court. It is a composite order, this issue also has to be decided by Apex Court and Revenue has to file appeal under Section 35-L of the Central Excise Act before the Apex Court. This Court has no jurisdiction to entertain these appeals, appeals are rejected as not maintainable

Summary

Issues:
1. Classification of 'Corex Gas' as a final product or by-product under Central Excise Tariff Act.
2. Levy of duty on 'Corex Gas' and imposition of penalty under Rule 25 of Rules.

Analysis:
1. The primary issue in this case revolves around determining the classification of 'Corex Gas' that arises during the manufacturing process of HR coils. The Revenue argues that 'Corex Gas' is a final product falling under the classification of Carbon Monoxide under the Central Excise Tariff Act, justifying the duty demand for various periods. Conversely, the assessee contends that 'Corex Gas' is a by-product not excisable under the Central Excise Act, specifically as Carbon Monoxide, thus challenging the duty imposition. The authorities have disagreed with the Revenue's claim regarding penalty levy, citing limitations under the law and confirming the duty levy.

2. The subsequent issue pertains to the imposition of duty and penalty on 'Corex Gas.' The assessee has already appealed to the Apex Court under Section 35-L of the Central Excise Act, challenging the imposition of penalty and confirming the duty demand. The authorities have set aside the penalty on grounds of limitation, prompting the Revenue to appeal against this decision. The interconnection between the bar of limitation, penalty setting aside, and the leviability of excise duty on 'Corex Gas' necessitates a comprehensive decision by the Apex Court. Given the interdependent nature of these issues arising from the same order, the High Court deems it inappropriate to bifurcate and decide on them independently. Consequently, the High Court rejects the appeals as not maintainable, advising the Revenue to pursue the matter before the Apex Court under Section 35-L of the Act for a conclusive resolution.

In conclusion, the High Court's judgment underscores the complexity of the issues surrounding the classification and levy of duty on 'Corex Gas,' emphasizing the need for a unified decision by the Apex Court due to the interconnected nature of the legal aspects involved.