TaxTMI 
TaxTMI 
1998 (11) TMI 216
X X X X Extracts X X X X
X X X X Extracts X X X X
.... CET sub-heading 3306.00 as "preparation for oral and dental hygiene......" and imposing a penalty of Rs. 3 lakhs. The period of demand is March, 1988 to 8th Feburary, 1993 while the show cause notice has been issued on 2-4-1993. 2. The brief facts of the case are that the appellants manufacture P or P medicamants falling under Chapter 30 and goods falling under Chapter 33 of the Schedule to the CETA, 1985. They were also manufacturing a product described as Clinsodent 75 gms. - "Scientific Denture Cleanser" in their factory without the aid of power and without payment of duty, by availing the benefit of exemption in terms of Notification 179/77 which grants exemption to goods falling under TI 68 of the Schedule to the erstwhile Cen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uired to be rubbed or brushed on the denture in any manner and is, therefore, not a scouring powder. The notice proposed recovery of the duty amount ultimately confirmed and also proposed imposition of penalty. The adjudicating authority confirmed the classification proposed and the demand and penalty holding that Heading 3306 covered the product and he invoked the extended period of limitation, holding the appellants guilty of misstatement of the product as scouring powder in order to wrongly avail the exemption under Notification 222/77 with intent to evade payment of duty. Hence this appeal. 2.1 We have heard Shri V. Lakhsmikumaran, learned Advocate who contends inter alia that the product in dispute is a scouring powder falling ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....wder as no abrasive action is involved. He submits that the extended period of limitation is applicable in the present case since they had deliberately misdeclared that their product was a scouring powder and deliberately and wrongly claimed the benefit of exemption available under Notification 222/77 which covers goods falling under Chapter 34 manufactured without the aid of power, which constituted suppression of facts with intent to evade payment of duty. However, he fairly submits that in the event of the Bench directing requantification for any reason, the assessable value would have to be reworked after allowing abatement towards duty from the sale price. 4. We have carefully considered the above submissions. Our findings are ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....jurisdictional Superintendent of Central Excise regarding classification of the product under the new Tariff in which they have stated that the product was used for scouring or washing of dentures and on this basis they claimed that this was a scouring powder under Chapter 34. In these letters, they intimated to the Department about the ingredients used in the manufacture of Clinsodent as well as its ultimate use as denture cleanser. Further in the 1990 questionnaire for valuation of goods under Section 4 of the Central Excise Act, 1944, in response to query No. 6 viz. "Are you supplying exempted goods or accessories along with excisable goods sold by you?" They replied that they were clearing Clinsodent 75 gms without the use of power and ....