2000 (11) TMI 560 - AT - Central Excise

Summary

Issues:
1. Classification of 'Javvadu Powder' under excise duty.
2. Eligibility for SSI exemption.
3. Question of limitation on the demand.

Classification Issue:
The appeal was filed by Revenue against the Collector's order stating that 'Javvadu Powder' is not excisable. The appellant argued that the mixing of sandalwood powder with oil and perfumes resulted in a new product, thus making it excisable under HSN notes. The respondents contended that proper declarations were filed earlier, and the duty rate calculation was not applicable due to falling under a tariff item. The circular clarified the classification under 33.03, and the Tribunal held that the Collector's order was incorrect for ignoring the Board's directive. The matter was remanded for re-adjudication by the Collector.

SSI Exemption Eligibility:
The respondents filed cross-objections asserting compliance with declaration requirements and turnover limits for SSI exemption. They argued that the demand was hit by limitation and should benefit from the exemption notification. The Tribunal found the Collector's order silent on these submissions, requiring a remand for further examination of turnover and eligibility for the exemption.

Limitation Question:
The issue of limitation and eligibility for the SSI exemption were crucial aspects not addressed adequately in the Collector's order. The Tribunal set aside the Collector's decision, remanding the matter for detailed consideration of these factors. The manufacturers were given the opportunity to present additional evidence for claiming the exemption. The appeal and cross-objection were disposed of accordingly.