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2022 (2) TMI 599 - AT - Central ExciseClassification of goods - clearances of printed base papers/printed decorative paper in rolls - to be classified under CETH 4811 90 99 or under CETH 4911 99 90? - Time limitation - HELD THAT - On the identical issue, in the case of M/S MATCHWELL VERSUS C.C.E. -AHMEDABAD-I 2019 (6) TMI 1019 - CESTAT AHMEDABAD , the Tribunal has passed order in favour of the assessee however, the Revenue has filed Tax Appeal No. 9177/2019 before the Hon ble Supreme Court against the said order and Revenue s appeal stand admitted before the Apex Court on 19.02.2020. Though this Tribunal is not precluded from passing order in the aforesaid status of admission of appeal before the Hon ble Supreme Court but in the interest of justice, to avoid multiple litigations, this matter to be taken up by the Adjudicating Authority after the outcome of Hon ble Supreme Court judgment in the case of M/s. Matchwell. The appeal is allowed by way of remand to the Adjudicating Authority for passing a fresh order.
Issues Involved:
Classification of printed base papers/printed decorative paper under CETH 4811 90 99, liability to pay duty, imposition of penalty on Director under Central Excise Rules 2002, applicability of Chapter Note 12 to Chapter 48, whether printing constitutes manufacturing, exemption under Notification No. 83/94-C.E., applicability of judgments in similar circumstances, relevance of job work for SSI exempted units, impact of ongoing litigation on the case, invocation of extended period of limitation, admissibility of duty credit. Detailed Analysis: Issue 1: Classification of Goods The main issue revolves around the classification of printed base papers/printed decorative paper under CETH 4811 90 99. The appellant argues that the printing process gives the product a distinct character, making it fall under Chapter 49 instead of Chapter 48. They rely on various judgments supporting their contention that the printed product should be classified differently due to the transformative nature of the printing process. Issue 2: Liability to Pay Duty The question of liability to pay duty arises based on the classification of the goods. The appellant argues that if the printing process is essential and changes the primary use of the paper, no duty should be payable. On the other hand, the Revenue contends that the printing transforms the base paper into a special product, warranting classification under CETH 4811 90 99 and thereby attracting duty payment. Issue 3: Penalty Imposition The imposition of a penalty on the Director under Central Excise Rules 2002 is another key issue. The appellant argues against the penalty, citing the nature of the printing process and the ongoing litigation related to a similar case involving a group company. They seek the quashing of the penalty and advocate for a remand pending the outcome of the Supreme Court judgment in the related case. Issue 4: Applicability of Exemptions The appellant claims exemption under Notification No. 83/94-C.E. for job work carried out for SSI exempted units. They argue that the nature of the job work and the exemption status of the units should shield them from duty payment and penalty imposition. Issue 5: Impact of Ongoing Litigation The ongoing litigation related to a similar case involving a group company raises concerns about the impact on the present case. The appellant seeks a remand pending the outcome of the Supreme Court judgment in the related case to avoid multiple litigations and ensure a fair decision based on the final verdict. Issue 6: Invocation of Extended Period of Limitation The appellant contests the invocation of the extended period of limitation and the imposition of penalties based on the interpretation issues involved and the favorable judgment in the related case. They argue that no penalty should be imposed, and any duty payable should allow for the benefit of cum-duty and credit of duty paid on inputs/input services/capital goods. This comprehensive analysis covers all the issues involved in the legal judgment, providing a detailed examination of the arguments presented by both parties and the relevant legal principles and precedents cited during the proceedings.
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