1997 (12) TMI 347 - AT - Central Excise

Summary

Issues: Classification under Tariff heading, Benefit of Notification No. 116/89, Time-barred demand

Classification under Tariff heading:
The case involved the classification of Poly-coated Paper by the appellants under Tariff heading No. 48.11 and Sub-Heading 4811.30. The appellants claimed the benefit of Notification No. 116/89. However, a show cause notice was issued as the appellants did not disclose the clearance of two types of Poly-coated Paper, one in Roll-form and the other in Sheet-form, in their classification list. The duty was confirmed upon adjudication, leading to the appeal.

Benefit of Notification No. 116/89:
The appellants argued that since they only produced polycoated roll-form paper and sheets, the proviso to Notification No. 116/89 should not be applicable to them. They contended that the benefit of the Notification should not be denied retrospectively. The Revenue, on the other hand, asserted that the Explanation in the Notification excluded products consisting of sheets of paper covered with plastics compressed in one or more operations, which applied to the appellants' product. The Tribunal held that the benefit of the Notification could not be extended to the product as it fell under the excluded category.

Time-barred demand:
Regarding the time-bar issue, the appellants claimed that the demand should be prospective, not retrospective. The Revenue argued that the show cause notice was issued within the prescribed period and, therefore, was not time-barred. The Tribunal found that the demand was not barred by time as the appellants had not disclosed the clearance of polycoated sheet of paper in their classification list, rendering the relevance of the classification list unclear. The appeal was dismissed based on these findings.

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