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TMI Blog2010 (12) TMI 989X X X X Extracts X X X X X X X X Extracts X X X X ..... ng intimation to the department, started effecting clearances under Chapter 5606.06 of the Tariff Act. In the light of the aforesaid facts it cannot be said that there was any suppression, misstatement or misdeclaration on the part of the assessee. It is not in dispute that the Customs authorities were clearing such goods under Chapter 56 of the Tariff Act. The assessee, therefore, was entitled to entertain a bona fide belief that the product manufactured by it would fall under the said sub-heading. It is not possible to state that the Tribunal has committed any legal error in holding that the extended period of limitation could not have been invoked. In favour of assessee. - Tax Appeal No. 2439 of 2009 with T.A. No. 2432 of 2009, - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had earlier classified its goods of Polyster/Nylon covered Yarn under Chapter Sub-Heading: 5402.61/6402.62 of the Central Excise Tariff Act, 1985 however, from July, 2001, the classification was deliberately changed to Chapter Sub-Heading: 56.06 of the said Act, 1985, though the proper classification has to be under Chapter Sub-Heading : 54.02, as was before, and further still continued to describe those goods as intermingled yarn rather than the covered yarn or the gimped yarn? 4. Whether in the facts and circumstances of the case, the learned Tribunal is justified in the eye of law in holding that the Department had the knowledge about the technology used by the assessee and hence the extended period could not have been invoked, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r alia, engaged in the manufacture of polyester covered yarn and nylon covered yarn. Prior to July, 2001, the assessee was clearing the yarn manufactured by it under Chapter 54 of the Central Excise Tariff Act, 1985 (The Tariff Act). However, the assessee noticed that such yarn on importation was being cleared by the Customs Department under Chapter 56 of the Tariff Act. It therefore, sought clarification and was advised that the yarn manufactured by it being a type of covered yarn, merits classification under Chapter 56 of the Tariff Act. Accordingly, the assessee, after intimating the department, started clearing the yarn manufactured by it under Chapter Sub-heading No. 5606.06 as against the Chapter sub-heading No. 5402.62/61 with effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e adjudicating authority to submit that a case of suppression and wilful misstatement and misdeclaration on the part of the assessee had been proved beyond doubt and as such, the Tribunal was not justified in holding that the extended period of limitation could not have been invoked. 5. The Tribunal, in the impugned order, has held thus: 12. It is quite clear from the above that the appellants had brought all the facts to the notice of the department and the department was aware of the technology being used by the appellants. The appellant did not mis-declare the description or manufacturing process etc. The fact that Customs house had assessed the bill of entry for the same type of the yarn classifying it under heading 56.06 has not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aforesaid facts it cannot be said that there was any suppression, misstatement or misdeclaration on the part of the assessee. It is not in dispute that the Customs authorities were clearing such goods under Chapter 56 of the Tariff Act. The assessee, therefore, was entitled to entertain a bona fide belief that the product manufactured by it would fall under the said sub-heading. If upon entertaining such a belief the assessee has made a claim that the goods manufactured by it are classifiable under Chapter sub-heading 56 of the Tariff Act, that too after obtaining clarification in this regard, the same cannot be equated with suppression or misdeclaration . 7. The Tribunal, upon appreciating the evidence on record has found that there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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