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TMI Blog2006 (11) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the said item under SH 2707.90 of the CETA Schedule as against the claim of the assessee for classifying it under SH 2713.30 of the said Schedule. When the assessee preferred appeal to the Commissioner (Appeals) against the above demand raised by the Deputy Commissioner, the appellate authority asked for pre-deposit of Rs. 3 crores under Section 35F of the Central Excise Act for the purpose of dealing with the appeal on merits. This amount was not deposited by the party. Consequently their appeal was dismissed on the ground of non-compliance with Section 35F. Hence the appeal and the present application before us. The impugned order obviously is not one passed on merits. Having this aspect in view, we have examined the records and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act and, therefore, prima facie the classification done by the lower authorities is correct. This claim is contested by learned Senior Counsel on the ground that the decision taken by the Board on the basis of the opinion of the Deputy Chief Chemist, CRCL is not the correct authority for this case inasmuch as, according to Counsel, it was not open to the Deputy Chief Chemist to offer any opinion on classification of the product. Learned Senior Counsel has also offered arguments based on HSN Notes in his endeavour to establish a prima facie case for classifying the subject goods under Heading 27.13. Alternatively, it is submitted that the company is being run on heavy loss from day-to-day. On this aspect, learned SDR submits that the compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assification of the processed oil under SH 2707.90 and the consequential demand of duty. Therefore, the appellants are bound to make a pre-deposit under Section 35F with the lower appellate authority. After considering all aspects of the matter and particularly taking into account the fact that the appellant-Company is a PSU, we are of the view that it will be harsh to ask them to pre-deposit an amount of Rs. 3 crores fixed by learned Commissioner (Appeals). We reduce it to Rs. 1 crore (Rupees One crore only) and direct the appellants to deposit the amount with the Commissioner (Appeals) within 30 days from today and direct the appellate authority to dispose of their appeal on merits upon report of compliance by the party. 4. The impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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