PREMRAJ INDUSTRIES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The application is for waiver of deposit of duty of Rs. 20.2 lakhs. The duty has been demanded on the ground that the goods that the applicant manufactured were not entitled to the benefit of the exemption contained in notification 8/01 after its amendment on 1.3.2002 (which provides exemption for small scale industries).

(2.) By the amendment made on this date goods of chapter 93 were excluded from the purview of the notification. The goods that we are concerned with are described as part of primer, igniter etc. The contention of the counsel for the applicant is that primers, igniters etc are goods classifiable in heading 36.03 of the tariff and not in chapter 93 and that therefore the amendment made to the notification will not have any consequence.

(3.) The matter however does not appear to be not simple. Prior to the amendment being made, the applicant had itself classified the goods as parts in hearing 93.05 which is for bombs, grenades and parts thereof. The applicant's present case is on the ground that its earlier classification is incorrect. Its counsel further emphasises that the classification at that point was not really relevant, both the chapters covered by small scale exemption. There could be some substance to this claim. At the same time, it has to be noted that classification is not a routine matter, and it is reasonable to conclude that the applicant has applied its mind before it decided to classify the goods in heading 93.05. While it is possible that this classification is incorrect and that the goods are classifiable in heading 36 has now been, however, at this stage, this fact cannot be ignored. We therefore think it proper to call for some.