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TMI Blog2015 (8) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... eading 1704 of the Central Excise Tariff pertaining to "sugar confectionary (including white chocolate) not containing cocoa". The dispute is only on the point as to whether during the above mentioned period of dispute, the bubble gum was eligible for duty exemption under notification no. 6/02CE dated 1/3/2002 (serial no. 247). The exemption notification no. 6/02CE (serial no. 247) prescribed concessional rate of duty of 8% for "sugar confectionary (excluding white chocolate) not containing cocoa" falling under sub-heading 1704.90. During the period prior to 28/2/2005 when there was six digit Central Excise Tariff, the main heading of 17.04 was "sugar confectionary (including white chocolate) not containing cocoa" and sub-heading 1704.10 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notification no. 6/02CE (serial no. 247) continued to cover the "sugar confectionary (excluding white chocolate) not containing cocoa falling under sub-heading 1704.90". The appellant claimed exemption under this notification and accordingly made clearance of bubble gum during period from 28/4/2005 to 28/2/2006 at the concessional rate of duty of 8% ad-valorem. The department, however, was of the view that even during the period w.e.f. 28/2/2005, the notification no. 06/02CE dated 1/3/2002 (serial no. 247) must be read with the old six digit tariff in force during period prior to 28/02/2005 and in which heading 170490 did not cover bubble gum. Accordingly, the department was of the view that during the above mentioned period of dispute, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , pleaded that during the period of dispute, i.e., from 28/2/2005 to 3/5/2006, notification no. 6/02CE (serial no. 247) and its successor notification no. 3/06-CE (Serial no. 16) prescribed concessional rate of duty of 8 per cent ad-valorem for "sugar confectionary (excluding white chocolate) not containing cocoa" and falling under sub-heading 170490; that during the period w.e.f. 28/2/2005, the old six digit, Central Excise Tariff had been replaced by the new 8 digit HSN based Central Excise Tariff and sub-heading 170490 covered bubble gum; that while during period prior to 28/2/005, the sub-heading 170490 of the Central Excise Tariff covered "sugar confectionary other than chewing gum bubble gum and the like whether sugar coated or not" a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orrect and there is no justification for denying the exemption notification no. 06/02CE to the clearances of bubble during period from 28/4/2005 to 28/2/2006. 4. Shri M.S. Negi, ld. DR, defended the impugned order by reiterating the findings of the Commissioner in it. He pleaded that entry no. 247 of the notification no. 06/02CE specified concessional rate of duty of 8 per cent ad-valorem for the goods of 170490 as it existed prior to 28/02/2005 when heading 170490 did not cover bubble-gum and the bubble gum was covered by heading 1704.10 only; that even though w.e.f 28/02/2005, the old six digit Central Excise Tariff had been replaced by the 8 digit HSN based Central Excise Tariff and sub-heading 170490 of the Central Excise Tariff w.e.f. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f did not cover bubble gum. However, in the new 8 digit tariff in force w.e.f. 28/2/005, there was change in the structure of heading 1704 pertaining to "sugar confectionary (including white chocolate) not containing cocoa" and in this heading while sub-heading 170410 covered only "chewing gum whether or not sugar coated and as such bubble gum were not covered under the heading 170410, the sub-heading 170490 covered "other sugar confectionary" and thus covered bubble gums. The point of dispute is as to whether the entry "sugar confectionary (excluding white chocolate) not containing cocoa and falling under sub-heading 170490" against serial no. 247 of the notification no. 06/02CE must be read with the heading 170490 as it existed during per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e department's contention that the sub-heading 170490 mentioned in serial no. 247 of the notification no. 06/02CE must be read with the old Central Excise Tariff as it existed during period prior to 28/2/2005 is not acceptable. It is seen that it is only by notification no. 29/06CE dated 4/5/2006 that serial no. 16 of the notification no. 03/06CE was amended and the entry against serial not. 16 in this notification was replaced by "sugar confectionary (excluding white chocolate and bubble gums" and thus by the amendment notification no. 29/06CE dated 4/5/2006, the bubble gum was excluded from the purview of the exemption. For this reason also, during the period from 28/2/2005 to 3/5/2006 when there was no exclusion of bubble gum in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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