2016 (5) TMI 275 - SC - Central Excise

Extended Period of limitation - Guar Gum and Guar Dal Flour - Whether the goods to be classified under Chapter sub-heading 1301.10 as per assessee or under Chapter heading 1101.00 as per Revenue - Held that - the assessee succeeds in the case inasmuch as on the ground of limitation itself because of the reason that the judgment of the Tribunal on the issue of limitation is perfectly justified inasmuch as at the relevant time there was conflicting judgment of the Tribunal and thus the action of the respondent in classifying the goods was clearly bonafide and larger period of limitation would not be available to the Department. - Decided against the revenue

Summary

Issues:
Classification of goods as "Guar Gum and Guar Dal Flour" under Chapter sub-heading 1301.10 or Chapter heading 1101.00 and the applicability of the period of limitation.

Classification of Goods Issue:
The case revolves around the classification of goods known as "Guar Gum and Guar Dal Flour." The appellant argues for classification under Chapter sub-heading 1301.10, while the Revenue seeks classification under Chapter heading 1101.00. The Tribunal ruled in favor of the assessee, emphasizing that the demand was time-barred. The Department's senior counsel referred to a larger Bench judgment favoring Revenue's classification under Chapter sub-heading 1301.10. However, the court found that the assessee would succeed based on the limitation ground. The court justified the Tribunal's decision on limitation due to conflicting judgments at the relevant time, deeming the respondent's classification as bona fide, thus denying a larger period of limitation to the Department.

Limitation Issue:
The judgment dismisses the civil appeal primarily on the ground of limitation. The court upholds that the appellant succeeds based on the limitation aspect alone, as the Tribunal's decision on limitation was deemed justified due to conflicting Tribunal judgments at the time. Consequently, the Department is not entitled to a larger period of limitation, leading to the dismissal of the civil appeal based on this ground.

In conclusion, the Supreme Court's judgment in this case primarily focuses on the classification of goods "Guar Gum and Guar Dal Flour" and the applicability of the period of limitation. The court ruled in favor of the assessee based on the limitation ground, highlighting the bona fide nature of the respondent's classification due to conflicting Tribunal judgments at the relevant time. As a result, the civil appeal was dismissed based on the limitation aspect, emphasizing the importance of the Tribunal's decision in such matters.