2000 (1) TMI 190 - AT - Central Excise

Summary

Issues: Classification of punched jacquard cards under Central Excise Tariff, suppression, wilful statement, withholding of information, extended period of limitation, penalty amount.

Classification Issue:
The appeal involved the classification of design punched jacquard cards used in weaving jacquard dobby fabrics. The Collector of Central Excise classified the cards under sub-heading No. 4823.90 of the Central Excise Tariff, citing Chapter 48 notes. The appellant contended that there was no dispute on classification, referring to a Tribunal decision. The Tribunal had previously settled the classification in a similar case, stating that plastic dobby cards fell under sub-heading No. 3926.90 and paper dobby cards under sub-heading No. 4823.90.

Suppression and Limitation Issue:
Regarding suppression and limitation, the Collector observed that the appellant had not disclosed the manufacturing of punched jacquard cards, leading to duty evasion. The Collector noted the absence of a classification list or documents, indicating suppression. The Collector held that the appellant's failure to inform the department despite clear tariff details constituted suppression. The Tribunal upheld the suppression charge, citing the lack of a license, record maintenance, or duty payment by the appellant. The Tribunal agreed with the Revenue that suppression with intent to evade duty was evident, applying the proviso to Section 11A(1) of the Central Excises & Salt Act, 1944.

Penalty Issue:
The appellant argued that the imposed penalty of Rs. 2 lakh was excessive, citing Supreme Court decisions. The Tribunal reduced the penalty to Rs. 50,000 considering the circumstances. The Tribunal rejected the appeal on merits and limitation but reduced the penalty amount based on the facts presented.

In conclusion, the Tribunal affirmed the classification of punched jacquard cards, upheld the suppression charge due to non-disclosure, and reduced the penalty amount. The decision highlighted the importance of complying with tariff classifications, disclosing manufacturing operations, and the consequences of suppression in excise matters.