1997 (2) TMI 227 - AT - Central Excise

Summary

Issues:
1. Classification of ultramarine blue under Tariff Heading 32.06 or Chapter Heading 32.12
2. Time-barred demand for duty payment

Analysis:

Issue 1: Classification of Ultramarine Blue
The first issue in the present appeals revolved around the classification of ultramarine blue purchased in bulk and repacked in small consumer packets. The appellant claimed it should be classified under Tariff Heading 32.06, while the authorities argued for Chapter Heading 32.12. The appellant's advocate argued that a clarification issued by CBEC supported their classification under Heading 32.06. They cited judgments by various High Courts and the Apex Court confirming that ultramarine blue falls under Chapter sub-heading 3206.90. The Tribunal considered these arguments and held that ultramarine blue should be classified under Chapter sub-heading 3206.90, in line with the previous court decisions and the Finance Act, 1995.

Issue 2: Time-Barred Demand
Regarding the second issue of whether the demand for duty payment was time-barred, the appellant's counsel pointed out that a notification issued under Section 11C of the Central Excise Act indicated different practices in determining dutiability. They argued that this notification supported the applicability of limitation in their case. The Tribunal acknowledged the notification and held that the demand beyond a period of six months would not be enforceable, thus ruling in favor of the appellant on the time-barred demand issue.

In conclusion, the Tribunal set aside the impugned order and allowed the appeals, granting any consequential relief to the appellants as per the law. The judgment provided a detailed analysis of the classification of ultramarine blue and the time-barred demand issue, relying on legal precedents and statutory provisions to reach its decision.