2012 (10) TMI 688 - AT - Central Excise

Penalty - Whether self-adhesive stickers are classifiable under Chapter 49 of the Central Excise Tariff as product of printing industry Held that - Respondent submitted that it is not the case of imposition of any penalty as it is a case of classification and the respondent was clearing the goods after filing necessary declarations, therefore there is no suppression of facts with intent to evade payment of duty - as the respondent was clearing the goods in question after filing the due declarations - it is not a case of imposition of any penalty in favor of assessee

Summary

Issues: Classification of self-adhesive stickers under Central Excise Tariff - Imposition of penalty for misclassification.

Analysis:
1. Classification of self-adhesive stickers: The appeal was filed by the Revenue against the Commissioner (Appeals) order, which classified self-adhesive stickers under Chapter 49 of the Central Excise Tariff as a product of the printing industry. The Revenue contended that the product should be classified under Chapter Heading 3919 as self-adhesive sheets, film, coil, or tape. The Revenue relied on a Tribunal decision in a similar case. The respondent agreed that the goods should be classified under Chapter 39 of the Tariff, acknowledging the Revenue's position.

2. Penalty imposition: The respondent argued that there should be no penalty imposed as they were clearing the goods after filing necessary declarations. It was emphasized that there was no intent to evade payment of duty as the goods were cleared with proper declarations. Considering this, the Tribunal found that since the respondent was compliant with filing declarations, there was no suppression of facts to warrant a penalty. Consequently, the impugned order was set aside, and the appeal was allowed based on the respondent's compliance with necessary procedures.

In conclusion, the judgment addressed the classification issue of self-adhesive stickers under the Central Excise Tariff, ultimately agreeing with the Revenue's classification under Chapter 39. The decision also highlighted the lack of penalty imposition due to the respondent's adherence to filing necessary declarations, indicating no intent to evade duty payment.