TaxTMI 
TaxTMI 
2017 (3) TMI 1282
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....in-Original No. 07/Commissioner/MRT-I/2008 dated 28.03.2008 passed by Commissioner, Central Excise, Meerut. 2. The matter is before the Tribunal for the second time. In the earlier round of litigation, the matter has gone up to the Hon'ble Supreme Court and the matter was remanded by the Hon'ble Supreme Court to the original authority i.e., the Commissioner for deciding the matter afresh in the light of the observations/ directions which are as follows:- "In the entire discussion in the impugned judgment there is no finding given by the Tribunal as to whether 'puffs' prepared from cereals would fall under the Chapter heading 19.04. As far as 'puffs' prepared from soya nuts are concerned there is no findings as to the qua....
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....e submissions, issued the impugned order in which Central Excise duty demand stands confirmed against the assessee to the extent of Rs. 2,06,10,579/- along with imposition of penalty of equal amount besides ordering payment of interest. Penalties of Rs. 5 Lakh each have been imposed on Shri K.K. Garg and Shri A.K. Garg, Directors as well as Rs. 2 Lakh on Shri D.K. Garg, Director. Land and building and plant and machinery were also ordered for confiscation which were allowed to be redeemed on payment of redemption fine of Rs. 5 Lakh. The present appeals have been filed by the assessee as well as Shri A.K. Garg and Shri D.K. Garg, Directors which are being disposed by this common order. 3. With the above background, heard Shri V. Lakshmiku....
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....ed in "Unit Container". The bags also contained conspicuous marking as "not for sale". 6. During the visit of the Central Excise officers to the assessee's factory on 22.01.1997, it was noticed that the goods manufactured by them were cleared in unit containers of 100gms./ 200gms./ 5Kgs and bearing brand name of 'BONTON'. The department has considered that the entire goods cleared from the factory was made bearing the brand name as above. Further, the appellant submitted that the clearances bearing brand name accounts for a very small percentage of the overall clearance. 7. First we consider the product Soya Nuts. The relevant CETH is reproduced below as it stood during the relevant time:- Chapter 21 Miscellaneous Edible prep....
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....p in unit containers and ordinarily intended for sale", in trade parlance refers to goods cleared for sale in convenient sizes of 100 gms., 200 gms. etc. for retail sale. The unit container cannot be used to refer to bulk packing of 10 Kgs. / 15 Kgs. which are mostly used in clearance for wholesale. It is also not in dispute that the goods have been cleared to ICDS for free supply and not for sale. Hence, the most appropriate classification for these goods is 2107.99. We note that the goods of 2107.99 were chargeable to 'nil' rate of duty as per tariff rate up to 28.02.1994 and with effect from 01.03.1994 the goods enjoyed 'nil' rate of duty under various notifications i.e. 6/92-CE dated 01.03.1992 and 2/94 dated 01.03.1994. The appellant h....
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....1995 as Soya based food preparation for infant use. They have made an alternate submission that in the event of department seeking to classify the goods under 1904, it is liable for classification under 1904 90 and not under 1904 10 as ordered by the ld. Commissioner. The relevant CETH entries are reproduced below:- Head- ing No. Sub Heading No. Description of goods Rate of duty 19.04 Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example, corn flakes); cereals, other than maize (corn), in grain form, pre-cooked or otherwise prepared 1904.10 - Put up in unit containers and ordinarily intended for sale 15% &nb....
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....s-a-vis total sale during the year 1992-93 to 1996-97 has been shown. From the above certificate of the Chartered Accountant, we note that quantities, varying from 91.55% to 98.80% in various years have been made to government (ICDS) which, as discussed in the above paragraphs, will be entitled to clearance at 'nil' rate of duty. However, the balance clearance made in unit containers will be liable to payment of Central Excise duty at appropriate rates. The assessee has claimed the benefit of various notifications prevalent during the period under dispute. There is also discussion in the impugned order about the SSI exemption notification benefits. Hence, it is necessary for the issue to go back to the adjudicating authority for re-quantifi....