1998 (6) TMI 308 - AT - Central Excise

Summary

Issues Involved:
1. Dutiability and classification of the "Jagat Guru" variety of Chaddars.
2. Alleged suppression of facts and applicability of the extended period of limitation.

Issue-wise Detailed Analysis:

1. Dutiability and Classification of the "Jagat Guru" Variety of Chaddars:
- Facts and Arguments:
- The respondents, M/s. JCT Mills Ltd., were engaged in manufacturing three varieties of Chaddars, including the "Jagat Guru" variety.
- The Revenue challenged the classification of the "Jagat Guru" variety, arguing it was a "made up" textile article under sub-heading No. 6301.00 of the Central Excise Tariff.
- The Collector of Central Excise, Chandigarh, had held that the goods were not "made up" textile articles as per Section Note 5 of Section XI of the Central Excise Tariff.
- The Revenue contended that the "Jagat Guru" Chaddars were stamped, sold as Chaddars, and usable without further working, thus fitting the definition of "made up" articles.

- Tribunal's Findings:
- The Chaddars were woven with demarcations at intervals of 2.5 meters, stamped as Chaddars, and sold in pairs, not in running lengths.
- The Tribunal noted that the goods were ready for use after cutting along the demarcated lines, without the need for hemming or other working.
- The Tribunal referred to the definition of "made up" in Section Note 5 of Section XI, which includes articles needing separation by cutting dividing threads without further working.
- The Tribunal disagreed with the adjudicating authority's narrow interpretation of "dividing threads" and found that the "Jagat Guru" Chaddars met the criteria for "made up" articles.

- Conclusion:
- The Tribunal concluded that the "Jagat Guru" variety of Chaddars was a "made up" textile article classifiable under sub-heading No. 6301.00 of the Central Excise Tariff.

2. Alleged Suppression of Facts and Applicability of the Extended Period of Limitation:
- Facts and Arguments:
- The Revenue argued that the respondents had suppressed facts by describing the "Jagat Guru" variety as unbleached fabrics in the classification list and not filing a price list.
- The Collector of Central Excise had expressed doubt about the suppression of facts and the applicability of the extended period of limitation.

- Tribunal's Findings:
- The Tribunal noted that no price list was filed for the "Jagat Guru" variety, and the classification list incorrectly described the goods as unbleached fabrics.
- The adjudicating authority had not provided separate findings regarding the "Jagat Guru" variety.
- The Tribunal found that the matter needed further examination on the issue of limitation.

- Conclusion:
- The Tribunal remanded the matter to the jurisdictional adjudicating authority to re-examine the issue of limitation, providing an opportunity for the respondents to present their defense.

Final Judgment:
- The appeal filed by the Revenue was allowed concerning the classification of the "Jagat Guru" variety of Chaddars.
- The matter was remanded to the jurisdictional adjudicating authority on the question of limitation for further examination and to pass an appealable speaking order. The appeal was disposed of accordingly.