CESTAT held that the appellant is not entitled to notifications...

CESTAT held that the appellant is not entitled to notifications N/N.6/2006-CE and N/N.1/2011-CE for industrial sewing machines with externally transmitted drive components; the machines are classifiable under CETH 8452.99.90 and the suspension unit with hanging hook is an optional accessory, not a machine part, classifiable separately (CETH 8428.90.90), and therefore not exempt. The Tribunal set aside the invocation of the extended period of limitation, finding absence of requisite mens rea or concealment and attributing delay to revenue scrutiny failures. Consequentially, penalty under section 11AC of the CEA was not sustainable and was quashed. The remainder of the duty demand was upheld; appeal allowed in part in favour of the appellant.

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