2000 (3) TMI 632

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....ts for Multi-flex systems under TI 68 of the Schedule to the erstwhile Central Excise Tariff prior to 28-2-1986 and thereafter under Chapter 73 of the Schedule to the CETA 1985. Investigation revealed that although classification lists had been submitted for parts, the assessees were actually marketing Multi-flex systems/components and Heavy duty systems and components as such, consisting of a combination of slotted angles, panels, cladding sheets, panel dividers etc. As per printed literature, Multi-flex systems were designed for normal loads in the homes, sheds, offices, shops, etc. and Heavy Duty systems were recommended for storage of very heavy and bulk loads. The systems could be assembled into a variety of useful items such as shelve....

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....ed CDR and Shri A. Hidayatullah, learned Sr. Advocate appearing alongwith Shri R.C. Pandey, learned Advocate. The two issues for decision in the case are : (a)     the correct classification of the Multi-flex systems and Heavy Duty systems falling under the old and current Central Excise Tariff; (b)     applicability of the extended period of limitation under proviso to Section 11A(1) of the Central Excise Act, 1944. 5. The literature of the assessee describes the Multi-flex system as consisting of angles, panels, panel dividers, etc. With the system, a whole range of useful items such as shelving, work benches and tables, sheds, cat walks, mezzanine floors, etc. as required in homes,....

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....em manufactured by the respondents herein fall for classification under TI 40 of the Schedule to the erstwhile Tariff upto 28-2-1986 and under CET Heading 94.03 of the Schedule to the current Tariff, after 1-3-1986. Since the Tribunal's decision in the case of New Chelur Manufacturers has been confirmed by the Apex Court, the observation in para 10.2 of the Tribunal's order in the case of CCE v. Trigan Metal Sections reported in 1989 (39) E.L.T. 666 (wherein classification of steel panels, shelves, etc. has been held to be under TI 68 of the Schedule to the erstwhile Central Excise Tariff, in view of the Multiple uses of the products) that the New Chelur Manufacturers decision of the Tribunal cannot be taken as a final and binding decision,....

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....se in office/home for use as furniture, classification should show them as TI 40 goods. However, this is a very feeble attempt on the part of the assessees to escape the charge of suppression/mis-declaration because they are unable to establish that Multi-flex systems/components classified by them under TI 68 were purchased for industrial use. Further, the assessees have admitted that even their dealers could not be in a position to clearly state the use to which the Multi-flex system was being put by the purchaser and therefore, the assessee's claim in the classification lists for classification under TI 68, is a deliberately wrong claim. We therefore, hold that the extended period of limitation under the proviso to Section 11A(1) of the C....