2003 (11) TMI 198 - AT - Central Excise

Summary

Issues:
Classification of keora water under Central Excise Tariff - Heading 33.01 or Heading 33.03

Analysis:
The case involved two appeals filed by the Revenue against the Order-in-Appeal passed by the Commissioner. The Revenue argued that the purified keora water should be classified under Heading 33.03 of the Central Excise Tariff for demanding duty, while the respondents contended that the product should fall under Heading 33.01. The Commissioner (Appeals) set aside the original order, stating that the classification under Heading 33.03 was beyond the scope of the show cause notices. The Revenue maintained that the impugned products should be classified under Heading 33.03, as upheld in other appeals.

The learned Advocate for the respondents argued that the adjudicating authority had exceeded the scope of the show cause notices by classifying the product under Heading 33.03 instead of 33.01. Citing relevant legal precedents, it was contended that the Tribunal cannot classify the product under a new heading without proper notice, and the correct approach would have been to dismiss the appeal, allowing the Excise authorities to issue a fresh show cause notice based on the correct classification.

Upon considering the submissions, the Tribunal found that the show cause notices specifically mentioned the classification under Heading 33.01, not 33.03. The Tribunal referred to a similar case where a new case was made against the appellants without proper notice, leading to the dismissal of the show cause notice. Citing the Supreme Court's decision, the Tribunal emphasized that a new case cannot be introduced during the appeal stage. Therefore, the impugned order by the Commissioner (Appeals) was upheld, and it was suggested that the Revenue could issue a fresh show cause notice for the correct classification under Heading 33.03. Consequently, both appeals by the Revenue were rejected.