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Issues:
Classification of Vanadium Sludge under Chapter Heading 26.20 or Chapter sub-heading 2841.90; Imposition of penalty and payment of interest under Section 11AB of the Act; Correctness of invoking the extended period under proviso to Section 11(1) of the Act; Claim for differential duty based on approved classification list; Classification of goods under Chapter Heading 28.41; Correct application of Interpretative Rules; Barred limitation for differential duty claim; Imposition of penalty under Section 11AC; Recomputation of duty payable for the specific period. Analysis: 1. Classification of Vanadium Sludge: The appellant, engaged in aluminium manufacturing, sought classification under Chapter Heading 26.20, while the Department insisted on Chapter sub-heading 2841.90. The conflicting decisions by coordinate Benches led to a larger Bench referral. The product, Sodium Orthovanadate, was considered a bye-product for extracting Vanadium Pent-Oxide. The Tribunal upheld classification under Chapter sub-heading 2841.90, considering it an oxometallic compound. 2. Imposition of Penalty and Interest: The appellant contested the penalty and interest imposition under Section 11AB, citing no concealment of facts. The Tribunal found the extended period invocation without merit due to no concealment, limiting the duty claim to a specific period. The penalty imposed was set aside under Section 11AC, applicable only to goods cleared up to February 1991. 3. Correctness of Extended Period Invocation: The Tribunal ruled against the Department's invocation of the extended period, holding it as barred by limitation due to the absence of concealment. The duty claim was restricted to transactions within six months before the show cause notice dated 22-3-1991. 4. Claim for Differential Duty: The appellant's contention of no concealment and adherence to approved classification lists was overruled based on the Finance Act, 2000 provisions. The Tribunal emphasized the importance of timely Departmental action on classification disputes. 5. Correct Classification under Chapter Heading 28.41: The Tribunal analyzed the goods' classification under Chapter Heading 28.41, considering the substance as an oxometallic compound. The application of Interpretative Rules was scrutinized, emphasizing the paramountcy of Chapter Notes in classification determinations. 6. Recomputation of Duty: The Tribunal set aside the impugned order, upholding the classification under Chapter sub-heading 2841.90. The duty payable for a specific period was to be recalculated, limited to transactions within six months preceding 22-3-1991. The matter was remitted to the adjudicating authority for recomputation with a fair hearing for the appellant.
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