2017 (6) TMI 465 - AT - Central Excise

Classification of Tooth Brush, inter-dental brushes - classified under CTH 96032100 or otherwise? - the assessee is emphasizing that the items tooth brushes and inter-dental brushes are in separate category. The tooth brush is available on any grocery shop whereas inter-dental brush is available only at a chemist shop - Held that - inter-dental brush of any kind is also a tooth brush and is used as an item for cleaning teeth. It is true that the item inter-dental brush or dental plate brush is not easily available at any grocery shop; the same is available only at a chemist shop. However, both are tooth brushes and both are covered by the Central Excise Tariff heading no. 96032100. Once Tariff sub-heading 96032100 is mentioned with the description tooth brush, one cannot arrive at the conclusion that inter-dental brush or dental plate brush is not part of that entry or the said description, when dental-plate brush is also a kind of tooth brush - subject item is covered by entry at Sr. No.97A of Third Schedule to C.E. Act, 1944. Extended period of limitation - penalty - Held that - where it is a question of interpretation for correct clarification duty is payable only for normal period. - subject matter is interpretation of law and extended period of limitation is not invokable - penalty also set aside. The subject matter is remanded for limited purpose to original adjudicating authority, who shall quantify the duty payable for the normal period along with interest payable u/s 11 AB CEA 1944 - appeal allowed by way of remand.

Summary

Issues:
Classification of Tooth Brush and Inter-dental Brushes under Central Excise Tariff heading 96032100.

Analysis:
The appellant contested the demand of duty on Tooth Brush and inter-dental brushes classified under chapter heading 96032100. The Central Excise Act, 1944 included Tooth Brush under Sr.No. 97A in the Third Schedule, making activities like packing, re-packing, and labeling subject to excise duty. The appellant argued that inter-dental brushes, although falling under the same tariff heading, were not explicitly mentioned in the entry. The Revenue contended that dental plate brushes were also considered tooth brushes, thus justifying the duty demand.

The Tribunal examined the distinction between Tooth Brush and inter-dental brushes, emphasizing that both items fell under the same tariff heading. Despite inter-dental brushes being less commonly found in grocery stores and more in chemist shops, they were deemed tooth brushes used for teeth cleaning. The absence of explicit mention of inter-dental brushes in the entry did not exclude them, as dental plate brushes were considered a type of tooth brush. Consequently, the Tribunal held that inter-dental brushes were covered by the entry at Sr. No. 97A, making them liable for excise duty.

Regarding the plea for non-invocation of the extended limitation period and penalty imposition, the Tribunal referred to a previous case's judgment emphasizing that duty was payable only for the normal period in matters of interpretation. As the subject matter involved interpreting the law, the extended period and penalties were deemed inapplicable. The Tribunal remanded the case to the original adjudicating authority to quantify the duty payable for the normal period with interest, allowing the appeal partially in favor of the appellant.

In conclusion, the Tribunal modified the impugned order, confirming duty payment for the normal period with interest, while setting aside penalties and extended limitations. The decision was pronounced on 08/06/2017.