2000 (8) TMI 388 - AT - Central Excise

Summary

Issues:
Classification of product - Handle Lugs under Central Excise Tariff sub-headings, Differential central excise duty demand for the period 1-4-1990 to 31-3-1991, Validity of show cause notices under Section 11A of the Central Excise Act.

Classification Issue:
The appeal concerned the classification of Handle Lugs by M/s. Alka Locks (P) Ltd. under sub-heading No. 8308.00 of the Central Excise Tariff, while the Department classified it under sub-heading No. 8302.00. The appellants accepted the latter classification from 1-4-1991 but disputed the demand for differential central excise duty for the period 1-4-1990 to 31-3-1991. The Collector of Central Excise (Appeals) confirmed a demand of Rs. 76,982.44 against the appellants, who argued that the demand for the earlier period was improper as their approved classification lists were not revised.

Differential Duty Demand Issue:
The appellants contended that they should not be required to pay the differential duty for the period 1-4-1990 to 31-3-1991 as they had not collected the higher duty from customers during that time. The Collector of Central Excise (Appeals) held that the demand could be made under Section 11A of the Central Excise Act, 1944. However, the appellants argued that demands for the period before 1-4-1991 should not be enforced as their classification lists had not been revised.

Validity of Show Cause Notices Issue:
The appellants cited the Supreme Court's decision in a related case and challenged the validity of the show cause notices issued within the normal period of limitation after the approval of the classification list. They argued that the demands were not valid due to retrospective amendments made in Section 11A of the Act. However, the Tribunal found no merit in the appeal and rejected it, upholding the demands made by the Department.

This detailed analysis of the judgment addresses the issues of classification, differential duty demand, and the validity of show cause notices under the Central Excise Act, providing a comprehensive overview of the legal arguments and decisions involved in the case.