1997 (12) TMI 179

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....s to what was the correct classification of this product and whether they were entitled to the benefit of Notification 1/93. 4. After the issue of the show cause notice, the case was adjudicated by the learned Dy. Collector who vacated the seizure made on 10-8-1994 and the proceedings initiated by the show cause notice dated 7-2-1995. The Department, however, appealed against this order and the Commissioner (Appeals) set aside the order of the Dy. Collector. 5. It was their submission that the learned Commissioner has erred in doing so. 6. It was their contention that the liquid gold is an article of gold under Chapter Heading No. 7101.90 but was entitled to the benefit of nil rate of duty in terms of the General Not....

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....d alone the benefit of the exemption Notification could not be denied. 11. In view of the above position, the learned Counsel submits that a prima facie case was in their favour and, therefore, stay may be granted. 12. Learned DR drew attention to the impugned order and stated that from the brief facts, it was evident that the appellants were engaged in the manufacture of ceramic colours commonly known as liquid gold without observing any Central Excise Procedures. In fact 85 phials of golden oriole were seized from a jeep. 13. On further investigations, the officers checked the stock and accounts and found that the goods were classifiable under Chapter Heading 32 and the appellants were not entitled to exemption und....

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.... We have considered the above submissions. We observe that the learned DR's arguments have strong force. Prima facie, it was not an alloy and admittedly it was being used inter alia for decoration of bangles, etc. and the learned Commissioner their own initial declaration of the product as ceramic colour. We also notice that the learned Commissioner (Appeals) has relied upon the Tribunal's order for determining the classification. The Allahabad High Court judgment cited by the learned Counsel in his application is an order passed with reference to Defence of India Rules whereas the Tribunal's above order prima facie appears to cover the aspect of excise classification and the learned Commissioner having relied thereupon, at this stage,....