2005 (2) TMI 282 - AT - Central Excise

Summary

Issues involved:
Classification of goods as furniture or articles of plastics, invocation of a longer period of limitation, eligibility for Modvat credit, treating sale value as cum-duty price, imposition of penalties.

Classification of goods:
The appellants manufactured plastic multipurpose stands believing they were articles of plastics not leviable to duty. The Revenue issued show cause notices claiming the goods were classifiable as furniture under Chapter Heading 94.03, demanding duty. The adjudicating authority upheld this classification, considering HSN explanatory notes and case laws. The Tribunal agreed, classifying the stands as furniture under Heading 94.03.

Invocation of a longer period of limitation:
The appellants argued they believed the goods were articles of plastics and had no intention to evade duty. The Tribunal found merit in this argument, limiting the duty demand for the first show cause notice to six months and confirming the demand for subsequent notices issued in time. The total duty demand was to be recalculated accordingly.

Eligibility for Modvat credit and cum-duty price treatment:
The Tribunal allowed the benefit of Modvat credit if the appellants could prove the duty-paying nature of inputs. They also permitted treating the sale value as cum-duty price, citing relevant case law.

Imposition of penalties:
As there was no evidence of mala fide intention to evade duty, the Tribunal set aside all penalties imposed on the appellants.

The appeal was disposed of in favor of the appellants based on the above findings and decisions.