1985 (9) TMI 204 - AT - Central Excise

Tribunal allows appeal due to late notices impacting Customs Tariff Act classification

JAYASHREE TEXTILES AND INDUSTRIES, RISHRA Versus COLLECTOR OF CUSTOMS, CALCUTTA

JAYASHREE TEXTILES AND INDUSTRIES, RISHRA Versus COLLECTOR OF CUSTOMS, CALCUTTA - 1986 (23) E.L.T. 491 (Tribunal) Issues:1. Classification of imported goods under Customs Tariff Act, 1975.2. Barred by time - Service of show cause notices.Classification of imported goods under Customs Tariff Act, 1975:The case involved two notices of short-levy demand issued to the appellants concerning two separate imports covered by Bills of Entry. The Department contended that the goods, initially declared as 'Raw wool from other animal hair,' were classifiable under a different heading of the Customs Tariff Act, making them ineligible for the exemption under Notification No. 154/79. The Assistant Collector and the Collector (Appeals) upheld this view, leading to an appeal before the Tribunal. The appellants argued that the goods, identified as 'Kid Mohair Wool,' should be classified differently. The Tribunal considered the nature of the imported goods and the term 'wool' under the Customs Tariff Act, ultimately allowing the appeal based on the issue of the notices being barred by time.Barred by time - Service of show cause notices:The appellants raised an objection regarding the time limit for the issuance of the show cause notices, contending that the notices were served beyond the normal six-month period as allowed under Section 28 of the Customs Act, 1962. The Tribunal examined the timeline of the notices and the service of the same on the appellants. The respondent conceded that the second notice was clearly beyond the time limit, but argued that the first notice, issued within six months of the duty payment, was not barred by time. The appellants, however, maintained that the actual service of the notice occurred after the six-month period, rendering it time-barred. The Tribunal, after considering the provisions of Section 28(1) of the Act and the principles of the General Clauses Act, concluded that the notices were indeed served beyond the permissible time limit, leading to the allowance of the appeal solely on this ground.In conclusion, the Tribunal allowed the appeal on the basis that both demands were liable to be struck down due to the show cause notices being issued beyond the permitted time limit. The detailed analysis of the classification of imported goods under the Customs Tariff Act, 1975, and the issue of the notices being barred by time formed the crux of the judgment, ultimately resulting in the appeal being allowed solely on the latter ground.