2017 (9) TMI 1547

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....uch manufacture char-dolachar emerges as a by-product. Appellants were clearing the said by-product on payment of duty at 6.18% classifying it under Central Excise Tariff Heading (CETH) No. 27012090. Department took the view that the said by-product since emerging during the course of manufacture of sponge iron is liable to be classified under sub-heading no. 26190090. Accordingly, two show cause notices were issued to respondent proposing demand of differential duty, along with interest thereof and also imposition of penalties. In adjudication, original authority confirmed the differential duty liability demand in both show cause notices, however, refrained from imposing penalty on the reasoning that matter involved interpretation of law. ....

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....ues of Interpretation to the First Schedule of the Central Excise Tariff Act, 1985, which states as follows: "the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods." 5.2 Only when the classification of the item is not possible by application of Rule 3(a), will the Rule 3(b) reproduced under, come into application: "mi....