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of <h1>Goods classified under Chapter Sub-heading 843290, no duty payable, penalties revoked</h1> <h3>Muskan Engineering Industries, Parveen Bansal, Authorized Signatory Versus CCE, Panchkula</h3> Muskan Engineering Industries, Parveen Bansal, Authorized Signatory Versus CCE, Panchkula - 2019 (369) E.L.T. 1482 (Tri. - Chan.) Issues:Classification of goods under Chapter Heading 7318 of Central Excise Tariff Act, demand of duty, confiscation of seized goods, redemption fine, and penalty imposition.Analysis:The appellants appealed against the orders classifying their goods under Chapter Heading 7318 of the Central Excise Tariff Act, demanding duty, and imposing penalties and confiscation of seized goods. The Revenue alleged that the appellants were manufacturing screw hooks without paying duty, leading to a search of their factory and seizure of goods. The show cause notice was issued based on investigation results, classifying the goods under Chapter Heading 7318, demanding duty with interest, and imposing penalties and confiscation. The adjudication confirmed the classification, demanding duty, confiscating seized goods, and imposing penalties. The appellants contested, arguing that their goods should be classified under Chapter Heading 843290, citing a similar case accepted by the department. They contended that the Revenue cannot classify the same product under two different heads, supported by a High Court case.The Tribunal found that both the appellants and another company were manufacturing harrow hooks used for tractors or trolleys, which were part of threshers and trolley harrow hooks. The adjudication in the other company's case concluded that harrow hooks fall under Chapter Heading 843290, attracting nil duty. Since the department accepted this classification, the Tribunal held that the appellants' goods should also be classified under Chapter Sub-heading 843290, with no duty payable. Consequently, the demand for duty was set aside, and the seized goods were not liable for confiscation. The penalties imposed on the appellants were also revoked due to no duty liability. Additionally, as the Revenue had conflicting views, the extended period of limitation was deemed inapplicable. Therefore, the impugned order was set aside, and the appeals were allowed with any consequential relief.
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