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2014 (3) TMI 665 - AT - Central ExciseWaiver of pre deposit - Duty u/s 4 or 4A - Excisability of toilet paper - Held that - under the Central Excise Tariff, toilet papers are separately classifiable than handkerchiefs, cleansing or facial tissues and towel and the third schedule to the Tariff does not cover toilet papers. In view of this, prima facie the applicants have made out a strong case in their favour. The pre-deposit of the dues is waived and recovery of the same is stayed during the pendency of the appeal - Stay granted.
Issues:
Classification of toilet papers under Central Excise Tariff - Liability to pay duty under section 4A of the Central Excise Act. Analysis: The appellant filed an application seeking waiver of pre-deposit of duty, interest, and penalty amounting to Rs.1,19,46.341. The demand was confirmed based on the classification of toilet paper under section 4A of the Central Excise Act, while the appellant argued that toilet papers are separately classifiable under chapter heading 4818 10 00, distinct from handkerchiefs, cleansing or facial tissues, and towels classified under heading 4818 20 00. The contention was that toilet papers are not covered under the third schedule of the Central Excise Tariff, making them exempt from duty under section 4A. The Revenue, however, contended that the goods in question, marketed as bathroom tissues, were akin to cleansing tissues covered under entry serial no. 55 of the third schedule, thus subject to duty under section 4A. The Tribunal noted that toilet papers are distinctively classified under the Central Excise Tariff and are not covered under the third schedule, supporting the appellant's argument. Consequently, the Tribunal found a strong case in favor of the appellant, leading to the waiver of pre-deposit and a stay on the recovery of dues during the appeal process. The stay petition was allowed, indicating a favorable outcome for the appellant in the classification dispute. In conclusion, the judgment focused on the proper classification of toilet papers under the Central Excise Tariff and the liability to pay duty under section 4A of the Central Excise Act. The Tribunal's decision favored the appellant's argument, emphasizing the distinct classification of toilet papers from other related products and granting relief by waiving the pre-deposit and staying the recovery of dues pending the appeal process.
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