9911796707
TMI Blog1996 (1) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... extiles Proofing Industries besides a penalty of Rs. 1.00 lakhs on Sh.Ugamchand Bhandari, power of attorney holder of said company and also a further demand of duty of Rs. 4,16,024 on the tarpaulin cleared by the said company holding that the company is ineligible to the benefit of Notification No. 1/93 under the impugned order dated 3-8-1995. 3. In Petition No 609/95, the demand is for duty of Rs. 73,60,116 and a penalty of Rs. 5 lakhs under the impugned order dated 24-7-1995. 4. The learned Consultant submitted that the issue relates to classification of the goods namely tarpaulin cloth manufactured by the petitioners as to whether the same would merit classification under Chapter Heading 52.07 as contended by the learned Consultant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 59 or 52. It was submitted that apart from the fact that the goods in question would not squarely cover all the wordings of Heading 5202 and Tariff Heading 5906. It was also urged that the bona fides of the petitioners that the goods would be classifiable under 5202 and would not be exempted cannot be questioned. It was more seriously contended that once an issue relating to classification arises where a doubt is entertained by the department itself the bona fides on the part of the petitioner cannot be questioned and it is well settled that if the manufacturer accepts that the goods would merit classification under 52.07 suppression cannot be imputed for invoking the longer period of limitation fastening a duty liability. It was submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above matter is very high and therefore the issue would require early resolution. Without expressing any opinion on the merits of the issue, even as per the letter of the Board dated 11-4-1991 referred to prevalence of a doubt in respect of classification of tarpaulin/water proofing as to whether the Tariff Heading 59 would apply or Tariff Heading 52, we are inclined to think the issue will have to be gone into in depth and analysed with reference to various other factors. Keeping in mind that a doubt was prevalent with reference to classification of the goods as would be seen from the letter of the Government cited supra and also having regard to the plea of bona fides in the above context and also keeping in mind the fact that the stake ..... X X X X Extracts X X X X X X X X Extracts X X X X
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