ITW INDIA LTD. Vs. CC

JUDGEMENT

(1.) THE appellant challenges the order of the Commissioner (Appeals) only to the extent that it rejects the contention of the appellant that the show cause notice was time barred. It is made clear, at the very outset, by the learned Counsel appearing for the appellant that the appellant does not challenge the impugned order on the question of classification of the goods in question, namely, ZYGLO -ZB -4B and 9CZ.

(2.) THE appellants were manufacturers of non -destructive testing equipment and consumables. According to the Revenue, they were having a godown at shed No. 31 APIIC, Phase -II, IDA, Pashyamylaram, in Medak District. These premises were not registered nor declared with the Central Excise Department. The appellants were re -packing certain chemicals in the said premises. The chemicals, namely, ZYGLO -ZP -4B and 9C RED concentrate were received in bulk packing of 205 litre of drums and these were re -packed into small packs of 1 kg. and cleared as 'trading goods' without payment of duty. From the investigation, it transpired that, the goods ZYGLO -ZP -4B were classifiable under chapter sub -heading 3206.20 and by virtue of Note 3 to Chapter 32, the activity of re -packing in smaller packs and labelling amounted to manufacture. According to the Revenue, therefore, the appellants had deliberately suppressed the information relating to the composition of the product as also the literature relating to it with an intention to evade payment of duty. The other product 9C RED was also re -packed and sold in the trading premises. According to the Revenue, no information was given in respect of such activity on the pretext that it was classifiable under Heading 3204 to which Chapter Note 3 was not applicable and, therefore, re -packing did not amount to manufacture. According to the Revenue, the goods 9C RED were appropriately classifiable under Heading 2821.90. It appears that, Chapter Note 10 was incorporated in Chapter 28 as per which, in relation to the products of Chapter 28, labelling or re -labelling of containers and re -packing from bulk packs to retails packs or adoption of any other treatment to render the product marketable to the consumer amounted to manufacture.

(3.) THE Appellate Commissioner upheld the demand in respect of the goods by classifying ZYGLO -ZP -4B under Chapter 3206.20 and 9C RED under Chapter Heading 2821.90. On the issue of limitation, it was held that, the appellants did not show that they declared the fact of repacking the goods to the Department. The contention that the notice was time -barred, was, therefore, rejected.