2000 (8) TMI 218 - AT - Central Excise

Summary

Issues: Classification of goods under Sub-Heading No. 5811.90 vs. 4811.30; Invocation of longer period of limitation for duty demand.

In the present case, the appellants contested the classification of their Poly-Coated Printed Paper under Sub-Heading No. 5811.90 by the Commissioner, arguing it should be classified under Sub-Heading No. 4811.30. They maintained that their product descriptions in various records were consistent with the latter classification. The appellants also challenged the demand raised beyond six months, claiming it was time-barred due to no wilful misstatement or suppression of facts on their part. They presented evidence of proper descriptions in Classification Lists, RT-12 returns, RG-1 register, and show cause notices issued earlier. The appellants argued that the Revenue had full knowledge of the facts, and there was no intention to evade duty payment. The appellants relied on legal precedents to support their case.

The Revenue, represented by a Senior Advocate, justified the longer period of limitation invoked against the appellants.

Upon careful consideration, the Tribunal observed that the appellants consistently described their product as "Printed Poly-Coated Paper" in various records and official documents. The Tribunal noted that the Revenue's case seemed to be based on a changed opinion regarding the classification of the product rather than any deliberate misstatement or suppression by the appellants. The Tribunal emphasized that for invoking the longer period of limitation, there must be suppression of facts or fraud with an intent to evade duty payment, which was not evident in this case. The Tribunal also addressed the newly introduced provisions of Section 110 of the Finance Act, 2000, but found them inapplicable to the facts of the case as the demand period exceeded six months from the issuance of the show cause notice.

Consequently, the Tribunal held that the proviso to Section 11A was not applicable in this case, setting aside the confirmed demand as barred by limitation. The appeal was allowed solely on the point of limitation without delving into the merits of the case.