Bhansali Engg. Polymers Ltd. Vs. Commissioner of Central Excise - Court Judgment

Excerpt:
1. the applicant filed this application for waiver of pre-deposit of duty of rs. 3,65,942 and penalties imposed under section 11ac of central excise act and under rule 173q of central excise rules.2. the contention of the applicant is that they were clearing the goods in question after classifying them under sub-heading 3903.30 of central excise tariff. the applicants filed the classification list, which was duly approved by the competent authority without any objection. they were also filing rt 12 returns regularly which were also assessed by the revenue. now the revenue has issued a show cause notice on 2.5.2001 seeking reclassification of the goods in question under sub-heading 3903.90 of central excise tariff for the period april 1996 to february 1997 and june 1998 to february 2000. the contention of the applicant is that the demand is time barred as no suppression can be alleged against the applicant in view of the fact that classification list filed by the applicant was duly approved.3. learned sdr appearing on behalf of the revenue submits that it was only on a visit of the revenue officer it was found that applicants were mis-declaring the products manufactured by them and they did not disclose the composition of the final product. therefore, the applicants after suppressing the material facts mis-declared the product to avoid the central excise duty.4. heard both the sides. the applicants were filing the classification list, which was duly approved during the period in question. in view of these circumstances, we find the balance of convenience is in favour of the applicant. therefore, the stay petition is allowed unconditionally and pre-deposit of duty and penalty is waived for hearing of the appeal. to come up for hearing of appeal on 19.3.2002.

Judgment:
1. The applicant filed this application for waiver of pre-deposit of duty of Rs. 3,65,942 and penalties imposed under Section 11AC of Central Excise Act and under Rule 173Q of Central Excise Rules.

2. The contention of the applicant is that they were clearing the goods in question after classifying them under sub-heading 3903.30 of Central Excise Tariff. The applicants filed the classification list, which was duly approved by the competent authority without any objection. They were also filing RT 12 returns regularly which were also assessed by the Revenue. Now the Revenue has issued a show cause notice on 2.5.2001 seeking reclassification of the goods in question under sub-heading 3903.90 of Central Excise Tariff for the period April 1996 to February 1997 and June 1998 to February 2000. The contention of the applicant is that the demand is time barred as no suppression can be alleged against the applicant in view of the fact that classification list filed by the applicant was duly approved.

3. Learned SDR appearing on behalf of the Revenue submits that it was only on a visit of the Revenue officer it was found that applicants were mis-declaring the products manufactured by them and they did not disclose the composition of the final product. Therefore, the applicants after suppressing the material facts mis-declared the product to avoid the Central Excise duty.

4. Heard both the sides. The applicants were filing the classification list, which was duly approved during the period in question. In view of these circumstances, we find the balance of convenience is in favour of the applicant. Therefore, the stay petition is allowed unconditionally and pre-deposit of duty and penalty is waived for hearing of the Appeal. To come up for hearing of Appeal on 19.3.2002.