2000 (3) TMI 632 - AT - Central Excise

Summary

Issues:
1. Correct classification of Multi-flex systems and Heavy Duty systems under old and current Central Excise Tariff.
2. Applicability of the extended period of limitation under proviso to Section 11A(1) of the Central Excise Act, 1944.

Analysis:

Classification of Multi-flex Systems and Heavy Duty Systems:
The case involved the classification of Multi-flex systems and Heavy Duty systems under the old and current Central Excise Tariff. The Tribunal examined the literature describing the Multi-flex system as a combination of angles, panels, and dividers used to build shelving, work benches, sheds, etc. The Tribunal referred to previous decisions, including Commissioner of Central Excise v. New Chelur Manufacturers Pvt. Ltd., where it was held that parts capable of being used for furniture fell under specific classifications. Following this precedent, the Tribunal upheld the Department's contention that the Multi-flex systems fell under specific classifications in both old and current Tariffs. The Tribunal also dismissed the claim of the respondents regarding the classification under a different subheading, emphasizing the binding nature of previous decisions in similar cases.

Applicability of Extended Period of Limitation:
Regarding the extended period of limitation, the Tribunal found evidence of mis-declaration and suppression by the assessee. The assessee had changed the nomenclature of goods and provided incorrect descriptions to evade excise duty. The Tribunal noted that the assessee's attempt to justify the misclassification based on a letter from the Assistant Collector was weak and lacked evidence of industrial use. Consequently, the Tribunal held that the extended period of limitation under the proviso to Section 11A(1) of the Central Excise Act, 1944 applied in this case. As a result of suppression, the Tribunal agreed with the imposition of a penalty on the respondent company. Additionally, the Tribunal clarified that assembly/technical service charges would not be considered part of the assessable value of the goods based on a Supreme Court decision.

In conclusion, the Tribunal upheld the Department's classification of Multi-flex systems and Heavy Duty systems under specific Tariff headings and affirmed the applicability of the extended period of limitation due to mis-declaration and suppression by the assessee. The penalty was imposed on the respondent company, and the appeal was disposed of accordingly.