Classification of goods- Payment of Central Excise

[Binu Karuthedath]

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.

AI Summary

Classification of goods: pay higher excise duty under protest to avert interest and preserve challenge to classification.
The assessee may pay central excise duty under protest to avoid interest and penalty while contesting classification; they must notify the jurisdictional range officer in writing with full facts, obtain an acknowledged receipt entry, and mark invoices "DUTY PAID UNDER PROTEST." Collecting higher duty from buyers is permitted but, if the assessee later prevails, excess collected may not be refundable and can be treated as unjust enrichment credited to the Consumer Welfare Fund.