2005 (1) TMI 375 - AT - Central Excise

Summary

Issues involved: Validity of impugned order dropping duty demand, classification of polyester staple fibre, proper show cause notice under Section 11A.

In the present case, the Appellate Tribunal CESTAT, New Delhi, addressed the issues of the validity of the impugned order dropping duty demand against the assessee, the classification of polyester staple fibre, and the sufficiency of the show cause notice under Section 11A.

Classification of Polyester Staple Fibre:
The Revenue challenged the impugned order dropping duty demand, arguing that the product polyester staple fibre manufactured by the assessee was not classifiable under Chapter 55 of the Tariff. The Tribunal noted that the processes required to classify the fibre under Chapter 54 or 55 had not been undertaken by the assessee. The definition of man-made fibres in Chapter Note 1 of Chapter 54 was deemed exhaustive and self-contained. Therefore, the Tribunal upheld the Commissioner (Appeals)' decision to drop the duty demand against the assessee based on this classification.

Validity of Impugned Order and Show Cause Notice:
The assessee contended that no duty demand could be confirmed due to the lack of a proper show cause notice under Section 11A. Upon review, the Tribunal found that the show cause notice issued did not quantify any duty amount but only proposed modifications to the declaration. As such, it was determined that this notice did not meet the requirements of Section 11A. Consequently, the impugned order of the Commissioner (Appeals) was upheld, dismissing the Revenue's appeal and disposing of the cross-objections raised by the assessees accordingly.