BHOR INDUSTRIES LTD. Vs. COMMISSIONER OF CENTRAL

JUDGEMENT

(1.) NOBODY is present inspite of today's notice of hearing having been sent to the appellants well in advance. Accordingly, we have heard Shri. Sanjay Singhal, Ld. JDR.

(2.) THE issue involved in the present appeal is excitability and classification of waste and scrap of released paper. The authorities below have classified the said waste and scrap under heading 4702.90 and has confirmed the demand of Rs. 7762/ - and has imposed personal penalty of identical amount under section 11AC of the Act. Seized goods worth Rs. 81,387.50 were also confiscated with an option to redeem to same on payment of redemption fine of Rs 16,000/ -

(3.) TRIBUNAL in the case of Parle Biscuits Ltd. v. Commissioner of Central Excise has held that waste paper is classifiable under sub -heading 4702.90 of Central Excise Tariff Act, 1985. Accordingly, by following the said decision, we hold the classification of the goods under heading 4702.90 and consequently confirm the demand of duty. However, as the appellant was contested on the legal issued on bonafide belief that the waste and scrap of paper is not excisable, we set aside penalty imposed upon the appellant and the confiscation of the goods.