TaxTMI 
TaxTMI 
1994 (11) TMI 195
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.... 1985 valued at Rs. 3,45,785.95, which is alleged to have been cleared by suppression of true facts without payment of duty, under Rule 9(2) of Central Excise Rules, 1944 read with Section 11A of the Central Excises & Salt Act, 1944. A penalty of Rs. 6,000/- has also been imposed under Rule 173Q(1) of the Central Excise Rules, 1944. The facts of the case are that the appellant (assessee) was clearing some varieties of paper falling under Chapter 48 of the CET Act,1985. On a surprise visit to the factory premises on 19-1-1987, the Supdt. of Central Excise noticed that the assessee manufacturing filter paper grade VS 272 among other products and were supplying the same to M/s. MICO Bangalore. On verification of classification list 4/86 dt.....
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.... has not appreciated their arguments. He has held that the item is classifiable under sub-heading 4805.90, without due application of mind as the period covered both under tariff and under new tariff and as such the order requires to be set aside. It is also pointed out that there is no suppression of facts in the light of the approved classification list and that the department had not placed any facts leading to suppression or misdeclaration. They had written base filter paper grade VS. 272, which according to their bona fide belief is a base paper and that is how the trade also understood it. If the department had any doubt regarding the correctness of the declaration, then they should have called for further particulars and verified the....
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....oth on the merits as well as on the time bar. As regards confirmation of duty under sub-heading 4805.90 for period earlier to 1986 period, ld. SDR accepted that there is some mistake regarding this portion of the order, but it can be corrected on demand. He pointed out the party had not given full description of the products as required under Rule 173B of the Central Excise Rules, 1944. The letter dt. 30-12-1986 annexed with show cause notice, which gave the details of manufacture of the product is not of much consequence. 7. We have carefully considered the submissions made by both the sides and have perused the records. The assessee had declared in their classification list 4/86, at item 41, Base filter Paper and in this had given....
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....cation. In that event of the matter, the assessee can not be alleged to have suppressed any description to evade the payment of duty. They have described the goods as per their bona fide understanding, as the manufacturing process continued to be same and that they were describing the goods in all their invoices as `base filter paper'. The department has not placed any evidence to seek change of classification in respect of one variety of `base filter paper' to sub-heading 4805.90 of CET '85. The party has also given the details of the manufacturing process by their letter dt. 30-12-1986. In the light of the approved classification list and in the facts and circumstances of the case, it cannot be said that the appellants have suppressed the....