Dear Sir
Department is raised SCN regarding the classification of the product. Now Assessee is paying Central Excise duty @6 % on MRP under chapter 30 . But department view is the product is covered under chapter 33 @12.5% BCD .Can we pay the difference duty as 'under protest' to avoid the future liability .Pls explain the what are the procedure to pay the duty and How we can file ER1 return.
Forum Debates Product Classification for Excise Duty: Chapter 30 vs. Chapter 33, 6% or 12.5% Duty Dispute A discussion on a forum addresses a dispute over the classification of a product for Central Excise duty purposes. The Assessee currently pays a 6% duty under Chapter 30, but the department claims it should be classified under Chapter 33 at 12.5%. Participants advise on whether to pay the higher rate 'under protest' to avoid future liabilities, explaining procedures for such payments and implications of changing the classification. They discuss the necessity of technical validation of the product's classification and the potential long-term legal process if the case escalates to higher courts. (AI Summary)