2015 (9) TMI 1084 - SC - Central Excise

Classification of flexible laminate foil of plastic and articles for packaging of goods and waste and scrap of plastic under appropriate Chapter Heading 39 meant for plastics - Held that - When all this material was made available to the department and the classification list have been approved and RT-12 returns assessed down the years, it is difficult to find any justification for upholding the allegation of misstatement or suppression of facts. Since the show-cause notice was barred by limitation and we do not find any error in the order of the Commissioner on this aspect, there is no need to refer the matter back to the Tribunal. - Decided against revenue.

Summary

Issues:
Classification of flexible laminate foil of plastic and articles for packaging of goods and waste and scrap of plastic under appropriate Chapter Heading 39 meant for plastics.

Analysis:
The Supreme Court addressed the issue of classification of flexible laminate foil of plastic and articles for packaging of goods and waste and scrap of plastic under the relevant Chapter Heading 39 for plastics. The Tribunal had previously relied on a judgment in the case of Commissioner of Central Excise, Calcutta Vs. India Foil Limited, but it was pointed out that this judgment had been overturned by the Supreme Court in Sharp Industries Ltd. Vs. Commissioner of Central Excise, Mumbai-III. Normally, the case would have been remitted back to the Tribunal for fresh adjudication. However, the Commissioner had accepted the respondent's appeal on both merits and limitation grounds, ruling that the show-cause notice was time-barred. The Commissioner highlighted that the evidence provided by the assessee, including details of product composition and customer purchase orders, did not support the allegation of misstatement or suppression of facts. As the show-cause notice was found to be barred by limitation and no error was identified in the Commissioner's decision on this matter, the Supreme Court dismissed the appeal solely on this ground.

In conclusion, the Supreme Court dismissed the appeal concerning the classification issue based on the finding that the show-cause notice was time-barred, as determined by the Commissioner. The Court did not see any reason to refer the matter back to the Tribunal in light of this aspect.