1987 (3) TMI 349 - AT - Central Excise

Water filter pots not utensils under Notification 244/77, duty demand time-barred. Appeal dismissed, demand period limited.

The Tribunal ruled that water filter pots did not qualify as utensils under Notification 244/77 due to their varied usage beyond kitchen purposes. The ... Demand - Limitation Issues:1. Whether the appellants are entitled to the benefit of Notification 244/77 for water-filter potsRs.2. Whether the demand for duty is time-barredRs.Analysis:1. The case involved the appellants, who manufactured non-ferrous articles, specifically aluminium utensils, seeking exemption under Notification 244/77. The dispute arose when the Asstt. Collector alleged that certain items like Tiffin Boxes, Tiffin Carriers, and Lunch Boxes were not utensils as per the notification, leading to a demand for duty. The Appellate Collector had previously ruled that water-filter pots were not utensils eligible for exemption. The main contention was whether water filter pots could be considered utensils under the notification. The Tribunal analyzed various definitions and standards to conclude that water filter pots did not qualify as utensils under the notification due to their varied usage beyond kitchen purposes, as per IS standards and separate standards for water filters.2. Regarding the time-bar issue, the appellants argued that the demand was time-barred as the classification lists had been approved by the department without any suppression of facts or misstatement. The Tribunal agreed with the appellants, noting that the Appellate Collector had not considered this aspect. Consequently, the Tribunal held that any demand should be restricted to a period of six months prior to the show cause notice issuance. Overall, the appeal was dismissed except for the modification in the period of demand limitation.