2000 (10) TMI 62 - AT - Central Excise

Summary

Issues:
Classification of goods under Central Excise Tariff Act, 1985 - Conflicting decisions of the Tribunal - Time bar for demand under proviso to Section 11A(1) of the Act.

Classification Issue:
The Tribunal was tasked with determining whether "filter cloth/grey coarse canvas" produced by M/s. Simplex Mills Private Limited should be classified under Chapter Heading 52.05 or Chapter Heading 59.09 of the Central Excise Tariff Act, 1985 for the period from 1-9-1989 to 30-11-1991. The issue arose due to conflicting decisions within the Tribunal regarding the classification of the goods. The Tribunal had previously classified the goods under different headings in separate cases, leading to uncertainty in classification. The appellants argued that the goods should be classified under tariff item 5205, citing previous decisions and clarifications by the Central Board of Excise & Customs. The Tribunal ultimately found that the goods were correctly classified under heading 5205 based on previous approvals and consistent instructions from the Board.

Time Bar Issue:
Regarding the time bar for the demand under proviso to Section 11A(1) of the Act, the appellants contended that the demand for the extended period was unwarranted as there was no evidence of fraud, collusion, misstatement, or suppression of facts to evade duty payment. They highlighted that the goods had been cleared for years against approved classifications, with no intent to evade duty. The Collector (Appeals) had previously approved the classification under Heading 5205, which was accepted by the department without appeal. The Central Board consistently reaffirmed the correct classification under heading 5205 despite conflicting Tribunal decisions. The Tribunal agreed with the appellants, concluding that the demand invoking the extended period was unjustified due to the absence of fraud or suppression. Therefore, the appeals were allowed on the ground of time bar, setting aside the impugned order and providing relief to the appellants.

This detailed analysis of the judgment from the Appellate Tribunal CEGAT, New Delhi, provides insights into the classification dispute and the time bar issue, emphasizing the importance of consistent classification and the absence of fraudulent intent in determining the outcome of the case.