RANUTROL LIFESTYLE Vs. CCE

JUDGEMENT

(1.) HEARD both sides. Appellant filed this appeal against the impugned order where the demand of Rs. 5,44,643/ - was confirmed and penalty imposed by classifying the Flexible Hose and Showers under heading 3922.10 of Central Excise Tariff Act and Spouts and Bottle Traps under Chapter 7418.90 of the tariff. The appellant are not contesting the classification as held in the impugned order. The only contention of appellant is that demand is time barred as appellant had not suppressed any facts with interest to evade duty. The demand is for the period 24/2/97 to 28/2/2000 and show cause notice was issued on 04/3/2002 alleging suppression with intent to evade to payment of duty. The contention of appellant is that appellant filed classification declaration under Rule 173B. In the declaration they specifically mentioned that they are manufacturing Sanitary Fittings viz. Taps/Cocks/Valves/Spouts/Bottle traps and shower etc. including flushing system complete and spares/parts of the sanitary fittings and claimed the classification under Chapter 8481.80 of the tariff. The contention is that appellant cleared the goods in question by specific names under the cover of invoices showing the classification under Chapter 8481.80 on payment of appropriate duty. The appellants were also filing necessary RT -12 returns showing the clearances of items in question under Chapter 8481.80 on payment of appropriate duty. The revenue wants to classify the same under different heading 7418.90 and 3922.10 of the tariff. The contention is that as appellant filed necessary declaration regarding the manufacture of the items and clearing the same under the same headings under invoices and also filing regular RT -12 returns, therefore, the allegation that appellant suppressed the facts with intend to evade the payment of duty is not sustainable.

(2.) THE contention of revenue is that the appellant filed declarations under Rule 173B of the erstwhile Central Excise Rules, 1944 in respect of goods manufactured by describing as sanitary fittings and parts of sanitary fittings as the detail of items were not mentioned in the declaration. The appellants were in the line of manufacture of sanitary fittings, therefore, they were fully aware that items in question not classifiable under Chapter 8481.80 of the tariff, therefore, as the appellant had not declared the goods, in question, in the classification declaration, therefore, they suppressed the fact with intent to evade the payment of duty.