1999 (3) TMI 253 - AT - Central Excise

Summary

Issues: Classification of 'Mineral Khaki Dye Liquor' under sub-heading 3206.90 for excise duty purposes.

In this case, the Appellate Tribunal CEGAT, MADRAS, dealt with the issue of classifying 'Mineral Khaki Dye Liquor' under sub-heading 3206.90 for excise duty purposes. The appeal arose from a previous order holding that the appellants' goods fall under this classification, confirming demands raised by show cause notices. The appellants argued that the item is not marketable and not stable, citing a previous tribunal order that upheld their contention. The Tribunal considered the burden of proof on the revenue to show the item is dutiable and classifiable, requiring market survey and expert opinion. The appellants claimed they were not manufacturing goods for marketing, as the substance was not sold in the open market and was not stable. They argued that the revenue failed to prove marketability or classification under the appropriate heading. The Tribunal noted previous cases where similar products were not classified as claimed by the revenue, emphasizing the need for proper evidence. The Tribunal found that the appellants had declared their product and manufacturing activity, with no suppression of facts, leading to the setting aside of the impugned order and allowing the appeal based on the previous tribunal's findings applicable to the present case. The judgment highlights the importance of proper evidence and classification criteria in excise duty cases.

This detailed analysis of the judgment provides insights into the classification of 'Mineral Khaki Dye Liquor' under sub-heading 3206.90 for excise duty purposes. It showcases the burden of proof on the revenue, the appellants' arguments regarding marketability and stability, and the Tribunal's consideration of previous cases and classification criteria. The judgment emphasizes the need for proper evidence and adherence to classification requirements in excise duty matters, ultimately leading to the setting aside of the impugned order and allowing the appeal based on established legal principles and precedents.