1996 (7) TMI 357

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....pproved by the Assistant Collector on 29-7-1986 under Tariff Sub-Heading 3501.90 approving the rate of duty @15% ad valorem. The Classification List also showed the composition as follows : (i) Resin; (ii) Starch; (iii) Fillers; (iv) Antisettling Agent & other chemicals. 3. It is appropriate to set out the change in Headings and sub-headings in Chapter 35 which took place with effect from 1-3-1987, the relevant portion of which reads as follows :- "Heading No. Sub-heading No. Description of goods duty Rate of   35.01 3501.00 Casein, caseinates and other casein derivatives; casein glues   15% . . . . . . . . .   . . . 35.05   Dextrins and other....

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....e notice was, therefore, issued by the Assistant Collector on 13-5-1988 alleging non-payment of duty during the aforesaid period inasmuch as they had cleared the goods at lower rate of duty @ 15% instead of the rate of 40%. This show cause notice was adjudicated by the Assistant Collector by his Order dated 31-8-1988 confirming the demand of duty to the tune of Rs. 4,50,248.15. He also had imposed a penalty of Rs. 500.00 for violation of various provisions of the Central Excises and Salt Act and Rules, 1944. The appellants herein had filed an appeal before the Collector of Central Excise (Appeals), Calcutta being aggrieved of that Adjudication Order. The lower appellate authority set aside the impugned order on the ground that the show caus....

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....ods and the composition of the goods. On the basis of this description and composition of the goods he submits that the Department could have correctly classified the goods and yet the Department did not classify the goods correctly. It continued with the old classification under sub-heading No. 3501.90. In order to examine this contention of the learned Consultant, we have to examine the change in law which had taken place with effect from 1-3-1987. We have already set out the change in Tariff under the Central Excise Tariff Act, 1985 which was effective from 1-3-1987. It is seen from the said change, that Tariff Heading No. 35.01 applies inter alia, to the "Casein Glues". Tariff Heading No. 35.05 applies inter alia, to Glues based on Star....