VAISHNO DEVI ENTERPRISES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The dispute in the present appeal relates to the classification of the product being manufactured by the assessee. Whereas the revenue has classified the appellants final product as "PU Foam Sheets"classifiable under Chapter Heading No. 3921 13 10 of First Schedule to Central Excise Tariff Act, which is not entitled to the Small Scale Exemption benefit in terms of Notification No. 8/2003-C.E., dated 1-3-2013, the appellants have contended that the product being manufactured by them is "Waste Scrap Foam Sheet"and is properly classifiable under Tariff Heading No. 3921 19 00, which is eligible for the benefit of Small Scale Exemption Notification No. 8/2003-C.E. It is seen that the proceedings initiated against the appellant were adjudicated by the Additional Commissioner, dropping the demands, vacating the show cause notice and holding classification in favour of the assessee. The said order was appealed against by the revenue before Commissioner (Appeals), who reversed the same. Hence the present appeal.

(2.) As per facts on record, the appellant's factory was visited by the Central Excise officers on 10-1-2013 to conduct verification of the actual process of manufacture and the nature of the manufactured product. Shri Naveen Kumar Jain, Proprietor of the unit in his statement dated 11-1-2013, deposed as under:-

(3.) On the basis of the process of manufacture as also report of CRCL, a view was formed that the goods manufactured by the appellant was "PU Foam sheets"and not "waste scrap foam sheets", inasmuch as the same consisted of 91.30 PU Foam. Inasmuch as, the goods falling under Heading 3921 13 10 were excluded from the benefit of Small Scale Notification, the proceedings were initiated against the appellant by way of issuance of show cause notice dated 5-6-2013, alleging that they have manufactured and cleared article of PU Foam involving duty of Rs. 13,15,453.00 during the period 2008 to 2013. Accordingly, notice proposed to confirm the said demand of duty, to impose penalty and to confiscate the seized goods.