TaxTMI 
TaxTMI 
2008 (3) TMI 518
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....06.10 along with exemption in terms of Notification No. 53/88-Central Excise, dt. 1-3-88. The requisite declaration for the said purpose were being filed by them. 2. Revenue drew samples of the products during the course of their visit on 17-10-89 and sent the same for testing. The statement of the director Shri Ashokbhai Premchand Chandaria was recorded wherein he described the manufacturing process. He further deposed that they have claimed the classification of the product under Chapter Heading 39 under the bona fide belief and there was no suppression on their part and that they are ready to obtain the licence and pay the duty. The appellant, subsequently, got themselves registered with the Department as on 21-11-89. 3. ....
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.... The extended period stand invoked by the adjudicating authority on the ground that the appellant's letterhead as also their registration with Directorate of Industries showed them as a manufacturer of Monomer. As such, the Commissioner has concluded that the appellants were aware that their product was not classifiable under Chapter 39 and they have wrongly claimed classification with an intent to evade payment of duty. 6. On the other hand, we find that the director of the appellant company, in his initial statement, had deposed that the product was being classified under Chapter 39 under a bona fide belief and the entire facts were disclosed to the Revenue. He has also shown his willingness to get themselves registered with the d....
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....s shown in the C.L. Product shown under Chapter 29 i.e. Regenerated Methyl Methacrylate is classifiable under sub-heading No. 3906.10. Methyl Methacrylate Monomer is plastic material in primary form, which have been capable either at the moment of polymerization or at some subsequent stage of being formed under external influence (usually heat and pressure, if necessary with a solvent or plasticizer) by moulding, casting excluding rolling or other process into shapes as per note No. 1 under Chapter 39 of Plastic and article thereof. You are therefore requested to correct the classification list accordingly and submit for approval. The classification list is returned herewith for necessary action." As such, we find that the appel....
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....oard's clarification is acceptable and the charges of suppression of facts with an intent to evade the duty cannot be sustained. 8. It is well-settled law that for invoking extended period, some positive act on the part of the assessee to suppress or mis-state with an intent to evade payment of duty is required. We find that positive action is missing in the present case. The appellants were not to be benefited with their claim of exemption in as much as they were entitled to Modvat credit of countervailing duty paid by them in respect of imported raw material, which was used in the manufacture of said final product. We are informed that the credit so availed was to the tune of Rs. 38 lakhs whereas the demand of duty is much on the ....