9911796707
TMI Blog2008 (3) TMI 518X X X X Extracts X X X X X X X X Extracts X X X X ..... duty is required. We find that positive action is missing in the present case - appeal allowed - decided in favor of appellant. - E/1197-1198/2004 - A/392-393/2008-WZB/AHD - Dated:- 5-3-2008 - Ms. Archana Wadhwa, Shri M. Veeraiyan, JJ. REPRESENTED BY : Shri P.V. Sheth, Advocate, for the Appellant. Smt. A. Vasudev, Jt. CDR, for the Respondent. [Order per : Archana Wadhwa, Member (J)]. The appellants herein are engaged in the manufacture of Regenerated Methyl Methacrylate Polymer. They are registered with Central Excise department and were claiming the classification of the said product under Chapter heading 3906.10 along with exemption in terms of Notification No. 53/88-Central Excise, dt. 1-3-88. The requisite declara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der was thereafter passed by the Commissioner, invoking longer period of limitation and confirming demand of duty of Rs. 12,49,790/- along with imposition of penalty of Rs. 10 lakhs on manufacturing unit and Rs. 2 lakhs on the director. The said order is impugned before us. 4. We have heard Shri P.V. Sheth, learned Advocate appearing for the appellant and Smt. A. Vasudev, Jt. CDR appearing for the Revenue. 5. The demand has primarily been assailed on the point of limitation. Admittedly, the show cause notice issued on 14-2-91 for the period April 88 to 20-11-89 is beyond the normal period of limitation. The extended period stand invoked by the adjudicating authority on the ground that the appellant s letterhead as also their registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MM Monomer under Chapter Heading 3969.10. The adjudicating authority s attention was drawn by the appellant to a letter of the Supdtt. addressed to M/s. Rainbow Plastics, Jamnagar which was manufacturing an identical product, stating that the MM Monomer is classifiable under Chapter Heading 3906.10 and not under Chapter 29. For better appreciation, we reproduce the extract of the said letter as below : Please refer to your letter No. Nil, dt. 18-6-87 on the above subject. Plastic bangle tubes/pipes of acrylic plastic is correctly classified under sub-heading 3917.00 instead of S.H. No. 3926.90 as shown in the C.L. Product shown under Chapter 29 i.e. Regenerated Methyl Methacrylate is classifiable under sub-heading No. 3906.10. Methyl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having been undertaken by the Revenue at the time of filing of declaration, they are deemed to have agreed with the assessee s view that the goods are properly classifiable under Chapter 39. In any case, we find that there was reasons good enough for the appellant to entertain the bona fide belief in the light of Supdtt. s letter addressed to M/s Rainbow Plastics that the bona fide belief that the goods were classifiable under Chapter 39. Tribunal in case of Intercity Cable Systems P. Ltd. - 1995 (80) E.L.T. 445 (Tri.), has held that such formation of bona fide belief on the basis of the Board s clarification is acceptable and the charges of suppression of facts with an intent to evade the duty cannot be sustained. 8. It is well-settled ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
