1996 (7) TMI 376 - AT - Central Excise

Summary

Issues: Classification of goods under different headings & Invocation of longer period of limitation for demand of duty

In this case before the Appellate Tribunal CEGAT, MADRAS, the issue revolved around the classification of goods manufactured from raw glass fiber and the invocation of a longer period of limitation for the demand of duty. The appellants sought classification under Heading 70.14, while the lower authority considered Heading 39.22 as applicable. The goods in question were manufactured by laminating glass fabric with plastic materials, leading to a dispute on the appropriate classification. The Tribunal analyzed the manufacturing process and the relevant tariff headings to determine the correct classification.

The Tribunal noted that Heading 70.14 covers articles directly manufactured from glass fiber, which did not include the goods in question, as they were made from laminated glass fabric using plastic materials. On the other hand, Heading 39.22 encompassed reinforced plastic articles, which aligned with the manufacturing process and description provided by the appellants. The goods were described as fiber glass reinforced plastic in the product literature, further supporting their classification under Heading 39.22. Therefore, the Tribunal concluded that the goods fell under Heading 39.22 based on the manufacturing process and product description.

Regarding the invocation of a longer period of limitation for duty demand, the appellants argued that their omission was bona fide and requested a shorter limitation period of six months. They contended that despite ignorance of the law not being an excuse, it could be a valid defense for applying the shorter limitation period. The lower authority did not address this plea adequately and confirmed the duty demand for a period beyond six months without providing reasons for invoking the longer limitation period. The Tribunal found this aspect lacking in the lower authority's order and remanded the matter for reconsideration on whether the longer limitation period should be applied, granting the appellants a fair opportunity to present their case. The Tribunal allowed the appeal by remanding the case for further consideration on the limitation period issue.

In conclusion, the Tribunal's decision focused on the correct classification of goods under different tariff headings and the proper application of the limitation period for duty demand, ensuring a fair opportunity for the appellants to present their arguments on these crucial aspects.