COMMISSIONER OF C. EX., DAMAN Vs. NIRMALA DYECHEM

JUDGEMENT

(1.) BEING aggrieved with the order passed by Commissioner (Appeals) vide which he has held the classification of respondents product Ala Fabric Bleach under Chapter Heading 2828.90 by accepting the assessees stand and has rejected the Revenues contention of classification of said product under Heading 3402.90. Hence, Revenue has filed the present appeal.

(2.) LEARNED advocate appearing for the respondents submit that he is not seeking to challenge the Revenues stand of classification of product under Heading 3402.90 and in all fairness accepts that the product is properly classifiable under Heading 3402.90. However, he submits that prior to the period in question, assessees claim of classification under Heading 2828.90 was being accepted by Revenue and various classification lists filed by them were duly approved. It is only subsequently, based upon the Chemical Examiners report that proceedings were initiated against them by way of issuance of show cause notice dated 1 -5 -2001, covering normal period of limitation from April 2000 to March 2001. The said proceedings culminated into an order passed by Dy. Commissioner, confirming demand of duty of Rs. 41,01,685/ - along with confirmation of interest in terms of Section 11AB of Central Excise Act, 1944. Further, penalty of Rs. 10 lakhs has been imposed upon the respondent in terms of Rule 173Q(1) of Central Excise Rules, 1944.

(3.) THE said order of Dy. Commissioner was appealed against by the assessee before Commissioner (Appeals), who accepted their stand of classification under CH 28. The impugned order of Dy. Commissioner was accordingly set aside. However, as the respondents are not now contesting the classification under Chapter 34, the duty of Rs. 41,01,685/ - becomes payable by them.