2015 (1) TMI 296 - AT - Central Excise

Waiver of pre-deposit - Classification of goods - Invocation of extended period of limitation - Held that - show cause notice which invokes extended period for demanding duty from them is incorrect as the declarations filed by the appellant in 2001 categorically record that product name and the process of manufacture. Be that as it may, we find that he issue is arguable one subsequent to the amendment in Chapter sub-headings from 01.03.2005, wherein 8 digit Chapter headings were brought into books. In order to appreciate whether the appellant s product would fall under Chapter heading 28352500 or other heading, the issue needs to be gone into detail which can be done only at the time of final disposal of the appeal. In our view, the demand of duty within limitation period from the date of issuance of show cause notice needs to be secured by way of ordering pre-deposit on the appellant. - Conditional stay granted.

Summary

Issues: Classification of product for Central Excise duty, invocation of extended period for demanding duty, waiver of pre-deposit, interpretation of Chapter headings post-amendment.

Classification of Product: The appellant cleared Di-calcium Phosphate (Animal Feed Grade) without paying Central Excise duty. The appellant argued that the product falls under Chapter 23, supported by declarations filed in 2001 and citing tribunal decisions. The department claimed the product falls under Chapter heading No. 28352500 based on tariff changes post-2005. The Tribunal found the issue arguable post-amendment and directed pre-deposit of a specific amount, emphasizing the need for detailed examination during the final disposal of the appeal.

Invocation of Extended Period: The appellant contested the invocation of an extended period for demanding duty, citing declarations filed in 2001 as evidence of the department's awareness of their activities. The Tribunal acknowledged the argument but focused on the classification issue post-amendment. It directed the pre-deposit within a specified timeline to secure the duty demand within the limitation period from the show cause notice date.

Waiver of Pre-Deposit: The Tribunal allowed the appellant to pre-deposit a specific amount within eight weeks and stay the recovery of the balance until the appeal's disposal. The decision was based on the arguable nature of the classification issue and the need for detailed examination during the final disposal, emphasizing compliance reporting and further orders on a specified date.

This judgment by the Appellate Tribunal CESTAT AHMEDABAD addressed the classification of Di-calcium Phosphate (Animal Feed Grade) for Central Excise duty, considering arguments related to the invocation of an extended period for demanding duty, the waiver of pre-deposit, and the interpretation of Chapter headings post-amendment. The Tribunal directed the appellant to pre-deposit a specific amount within a set timeline, highlighting the need for detailed examination during the final disposal of the appeal due to the arguable nature of the classification issue post-amendment. Compliance reporting and further orders were scheduled for specific dates to manage the pre-deposit and stay of recovery until the appeal's disposal.