2000 (11) TMI 451 - AT - Central Excise

Summary

Issues:
1. Appeal against dropping of Central Excise duty demand on Innoculum Media and Calcium Citrate.
2. Interpretation of Chapter Note 1(a) of Chapter 29 of the Central Excise Tariff.
3. Marketability of Innoculum Media and Calcium Citrate.
4. Time-barred demand of duty.
5. Allegation of suppression of material facts.

Analysis:

1. Appeal against dropping of Central Excise duty demand on Innoculum Media and Calcium Citrate:
The appeal was filed by the Revenue against the order of the Collector of Central Excise dropping the demand of Central Excise duty on Innoculum Media and Calcium Citrate. The Revenue challenged the decision of the Collector based on the excisability of Calcium Citrate and marketability of Innoculum Media.

2. Interpretation of Chapter Note 1(a) of Chapter 29 of the Central Excise Tariff:
Chapter Note 1(a) of Chapter 29 was crucial in determining the excisability of Calcium Citrate. The note states that the Headings of the Chapter apply to separate chemically defined organic compounds, regardless of impurities. The Tribunal found that Calcium Citrate falls under this definition, making it an excisable commodity.

3. Marketability of Innoculum Media and Calcium Citrate:
The Tribunal examined the marketability of Innoculum Media and Calcium Citrate. While Calcium Citrate was deemed marketable due to its various uses and chemical composition, Innoculum Media was found not to be marketable based on the lack of evidence supporting its market presence.

4. Time-barred demand of duty:
The ld. Collector had held the demand of duty to be time-barred, which was challenged by the Revenue. The extended period of limitation under the proviso to Section 11A(1) was invoked by the Department due to the alleged suppression of material facts by the respondents to evade Central Excise duty.

5. Allegation of suppression of material facts:
The Department alleged that the respondents suppressed material facts, particularly regarding the marketability and use of Calcium Citrate, to evade duty. The Tribunal found that the extended period of limitation was rightly invoked by the Department based on the evidence of suppression by the respondents.

In conclusion, the Tribunal set aside the impugned order concerning the excisability of Calcium Citrate and the limitation issue. The decision on Innoculum Media was upheld, confirming the demand of duty on Calcium Citrate. The appeal was partly allowed, addressing the various issues raised by the Revenue in the case.