2004 (8) TMI 126 - AT - Central Excise

Summary

Issues involved:
1. Classification of goods under Central Excise Tariff
2. Demand for payment of duty under Section 11A of Central Excise Act

Classification of goods under Central Excise Tariff:
The appeal was filed by the Revenue against the Order-in-Appeal which classified "MILKAFE" under Heading 2107.91 of Central Excise Tariff. The Revenue argued that a previous Tribunal decision classified similar goods under Heading 21-01-10 and contended that the goods in question should be classified under Heading 2101.10. However, the respondent relied on the decision of the Tribunal in a different case to support the classification under 2101.10. The Tribunal set aside the impugned order and ruled that the goods should be classified under Heading 2101.10 of the Central Excise Tariff.

Demand for payment of duty under Section 11A of Central Excise Act:
Regarding the demand for payment of duty, it was found that the show cause notice did not contain a demand under Section 11A of the Central Excise Act. The notice only proposed a change in the classification of the goods. The Adjudicating authority confirmed the demand based on the proposed classification, which was later set aside by the Commissioner (Appeals). The Revenue did not challenge this finding in their grounds of appeal. The Tribunal concluded that without a specific demand under Section 11A in the show cause notice, the differential duty cannot be confirmed. However, the Revenue was given the liberty to take appropriate action for recovery of any consequential demand in accordance with the law.

In summary, the Tribunal ruled in favor of classifying the goods under Heading 2101.10 of the Central Excise Tariff and emphasized the importance of a specific demand under Section 11A for confirming differential duty.