2009 (7) TMI 980 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT, MUMBAI, consisting of S/Shri A.K. Srivastava and Ashok Jindal, JJ., heard a stay petition filed by the applicants against an order by the Commissioner confirming a duty demand of Rs. 20,47,601/-, interest, and an equivalent penalty. The key issue in this case pertains to the classification of the Guest Room Central System with temperature control feature, specifically whether it falls under Chapter Heading 85.37 as claimed by the applicants or under 90.32 as held by the Revenue. The Tribunal noted that this is the second round of litigation, with the earlier round being remanded by the Tribunal to the Commissioner with specific directions. After considering expert opinions, the Commissioner concluded that the thermostat attached to the Guest InnLink/Maestro cannot control electricity but only the air conditioning unit, leading to the view that the system falls under Chapter Heading 90.32. The Tribunal also addressed the plea of time bar raised by the applicants' advocate, finding it unsustainable based on the Commissioner's observations. In light of the circumstances, the Tribunal directed the applicants to pre-deposit Rs. 6 lakhs towards duty, in addition to Rs. 4,00,000/- already paid, within eight weeks. Compliance was to be reported by 15-9-2009. Failure to meet these directions would result in the vacation of the stay and dismissal of the appeal without further notice.