1996 (1) TMI 257

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.... on the petitioner M/s. Bharat Textiles & Proofing Industries besides a penalty of Rs. 1.00 lakhs on Sh.Ugamchand Bhandari, power of attorney holder of said company and also a further demand of duty of Rs. 4,16,024 on the tarpaulin cleared by the said company holding that the company is ineligible to the benefit of Notification No. 1/93 under the impugned order dated 3-8-1995. 3. In Petition No 609/95, the demand is for duty of Rs. 73,60,116 and a penalty of Rs. 5 lakhs under the impugned order dated 24-7-1995. 4. The learned Consultant submitted that the issue relates to classification of the goods namely tarpaulin cloth manufactured by the petitioners as to whether the same would merit classification under Chapter Heading ....

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....me would merit classification under Chapters 59 or 52. It was submitted that apart from the fact that the goods in question would not squarely cover all the wordings of Heading 5202 and Tariff Heading 5906. It was also urged that the bona fides of the petitioners that the goods would be classifiable under 5202 and would not be exempted cannot be questioned. It was more seriously contended that once an issue relating to classification arises where a doubt is entertained by the department itself the bona fides on the part of the petitioner cannot be questioned and it is well settled that if the manufacturer accepts that the goods would merit classification under 52.07 suppression cannot be imputed for invoking the longer period of limitation ....