1999 (7) TMI 151 - AT - Central Excise

Summary

Issues: Classification of product under Central Excise Tariff, Benefit of Notification No. 339/86-C.E., Applicability of extended period of limitation

Classification of Product under Central Excise Tariff:
The appeal was filed against the Order-in-Original classifying disinfectors under sub-heading 9018.00 of the Central Excise Tariff. The Revenue argued that disinfectors are not covered under this heading as they are general-purpose machines used for sterilization in various settings beyond medical or veterinary sciences. The description provided by the respondents supported this argument, indicating the product's versatility for sterilization in hospitals, hatcheries, laboratories, etc. It was concluded that disinfectors are more appropriately classified under sub-heading 84.79 of the Central Excise Tariff due to their multifarious functions.

Benefit of Notification No. 339/86-C.E.:
The Notification provided exemption to humidifiers, but the product in question, a disinfector, did not qualify as a humidifier. Additionally, the respondents failed to produce a certificate showing the product as a life-saving equipment, which was another category eligible for exemption under the notification. Consequently, the benefit of the notification was deemed unavailable for the disinfector.

Applicability of Extended Period of Limitation:
The Revenue contended that the extended period of limitation applied due to the respondents allegedly clearing disinfectors under the guise of humidifiers, constituting suppression of facts. However, it was found that the respondents had disclosed their intention to manufacture disinfectors in prior communications with the Central Excise authorities. Their declarations also mentioned the product accurately. As a result, it was determined that there was no suppression or misdeclaration of facts by the respondents, and the provision of the Act regarding the extended period of limitation was not applicable in this case.

Conclusion:
The Tribunal upheld the Order-in-Original's classification of disinfectors under sub-heading 84.79 of the Central Excise Tariff, denied the benefit of Notification No. 339/86-C.E. due to the product not being a humidifier or life-saving equipment, and rejected the Revenue's argument for the extended period of limitation based on the lack of suppression or misdeclaration of facts by the respondents. The appeal was disposed of accordingly.