CESTAT Slams Dept. | The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the Department without application of mind as both the adversaries sought for setting aside of the order passed by the Commissioner but what bothered us most is useless exercise of the adjudication and appellate process, that continue for more than 10 years at different Forums, when Appellant had classified its goods manufactured under Chapter 57 and Department has disputed the same but comes in appeal to get a declaration that the product is classifiable under Chapter 57 and not under Chapter 87 in which Revenue-Department has proposed and confirmed its classification through adjudication process.
The bench of Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that it would be an useless exercise to further deal with the matter when both parties/adversaries are not in variance with each other stand.
Table of Contents – CESTAT Slams Dept.
Background
The Appellant/assessee is a manufacture of moulded carpets / car mats. It was clearing the same under Central Excise Tariff Item No. 5703 90 90 and was availing benefit of exemption Notification No. 29/2004- CEx for the same but Department proposed to classify the same under Tariff Item No. 8708 99 00 of the Central Excise Tariff Act, 1985 and show-cause-cum-demand notice was issued to the Appellant proposing recovery of duty alongwith interest and penalty for goods manufactured and cleared by the Appellant during the period from August, 2007 to 6th July, 2009.
The appellant suffered an adjudication process where classification under Chapter 87 bearing Tariff Item No. 8708 99 00 was confirmed as “parts and accessories of motor vehicles” by the Commissioner but demand was held to be not sustainable for the extended period since the issue was interpretative in nature.
The Committee of Chief Commissioners reviewed the order passed by the Commissioner and opined that Commissioner was erred in classifying the item under Chapter 87 which should have been correctly classified under Chapter 57.
Accordingly, the jurisdictional Commissioner has filed this appeal challenging legality of the order passed by the Commissioner.
Conclusion – CESTAT Slams Dept.
The CESTAT allowed the appeal and set aside the order passed by the Commissioner of Central Excise, Customs & Service Tax.
Case Details
Case Title: Commissioner of Central Excise Versus M/s. Hitkari Hitech Fibres (P) Ltd.
Case No.: Excise Appeal No. 86796 of 2014
Date: 25.10.2024
Counsel For Appellant: Vinod S. Chettiparambil
Counsel For Respondent: Rajesh Ostwal
