2018 (9) TMI 1351 - AT - Central Excise

Classification of goods - Chlorinated Paraffin Wax - to be classified under Chapter Sub Heading 38 24 90, or under Chapter Sub Heading 38122090? Held that - Inasmuch as there cannot be any grievance on the part of the assessee vide the said order of Commissioner which has vacated the show cause notice and has dropped the proceedings, we find no justifiable reasons to interfere in the impugned order - appeal disposed off.

Summary

Issues:
Classification of product under different subheadings in Customs Tariff - Effect of different classification on future manufacture and clearances - Justifiability of Commissioner's order vacating show cause notice and dropping proceedings.

Analysis:
1. Classification of Product: The judgment revolves around the classification of Chlorinated Paraffin Wax by the Adjudicating Authority under Chapter Sub Heading 38 24 90, contrary to the appellant's claim of classification under Chapter Sub Heading 38122090. Despite the discrepancy in classification, it is noted that both headings attract the same rate of duty. Consequently, the demand proceedings against the assessee were dropped by the Adjudicating Authority, resulting in no confirmation of demand, interest, or imposition of penalty as per the impugned order.

2. Effect on Future Manufacture and Clearances: The appellant's advocate acknowledged that since the Commissioner adopted a different classification from the one claimed by the assessee, it might impact future manufacturing and clearances. The advocate argued that the Commissioner's classification, divergent from the appellant's claim, may not be applicable due to differences in ingredients compared to those specified in the Board's circular followed by the Adjudicating Authority.

3. Justifiability of Commissioner's Order: The judgment concludes that since the Commissioner's order vacated the show cause notice and dropped the proceedings, there is no valid reason for the appellant to challenge the said order. Consequently, the appeal was disposed of, granting the appellant the liberty to contest the classification in subsequent proceedings if deemed necessary.

In summary, the judgment addresses the dispute over the classification of Chlorinated Paraffin Wax, the impact of differing classifications on future operations, and the justifiability of the Commissioner's decision to vacate the show cause notice. The decision emphasizes the absence of grounds for the appellant to challenge the order, leading to the disposal of the appeal with the option for the appellant to contest the classification in future proceedings.