https://www.taxtmi.com/caselaws?id=220143 Mere inclusion of soft cotton waste in tariff heading 5202 did not make it excisable; duty under the proviso to Section 3(1) arose only if the residue emerged through manufacture as a commercially distinct product with a new identity, character and use. On the facts, the waste generated during carding and combing of ginned cotton was treated as an inferior residue, and no evidence showed commercial distinctness, so the duty demand failed on merits. The extended period under Section 11A(1) also was unavailable because the department was aware of the clearances, while the assessee had sought clarification and filed a revised classification list. In the absence of fraud, suppression or wilful misstatement with intent to evade duty, the demands were time-barred. en-us Mon, 25 Jun 2012 00:00:00 +0530 Fri, 11 Jan 2013 15:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=220143 Mere inclusion of soft cotton waste in tariff heading 5202 did not make it excisable; duty under the proviso to Section 3(1) arose only if the residue emerged through manufacture as a commercially distinct product with a new identity, character and use. On the facts, the waste generated during carding and combing of ginned cotton was treated as an inferior residue, and no evidence showed commercial distinctness, so the duty demand failed on merits. The extended period under Section 11A(1) also was unavailable because the department was aware of the clearances, while the assessee had sought clarification and filed a revised classification list. In the absence of fraud, suppression or wilful misstatement with intent to evade duty, the demands were time-barred. Case-Laws Central Excise Mon, 25 Jun 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=220143