TaxTMI 
TaxTMI 
TaxTMI 
2019 (6) TMI 734
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....utions) by the Director of Drug Controls. The appellant classified this product under Tariff sub-heading 35079061 and paid duty on the basis of the specific Tariff Heading for "Streptokinase" for the period from June 2009 to December 2009. They started clearing the product in June 2009. There was no clearance of the product during January 2010 to March 2010. However for clearances from April 2010 onwards, the appellant classified the product under Tariff sub-heading 30049084 and claimed full exemption from payment of Central Excise duty in terms of Notification No. 4/2006-CE dated 1.3.2006 r/w Notification 21/2002-Cus. dated 1.3.2002 as amended. In terms of Notification No. 4/2006-CE, drugs or medicines specified in List 3 or List 4 appende....
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....her education cess in respect of the exempted goods namely "Streptokinase" by them. 5. Show Cause Notice was issued raising the above allegations and proposing to recover the wrongly availed credit of duty on capital goods, inputs and input services to the tune of Rs. 65,56,978/- along with interest and also to recover an amount of Rs. 46,49,379/- being the amount of excise duty collected from the buyers and to be deposited with the Central Government under section 11D of Central Excise Act, 1944 along with interest on the above amount besides penalties. After due process of law, the original authority dropped the proposal for demand of excise duty of Rs. 46,49,379/- under section 11D of Central Excise Act, 1944 as well as to impose penalt....
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....entry for "Streptokinase" under the said Tariff heading. 7. Later, a letter dated 7.1.2010 was issued to the appellant informing that no effective rate of 4% is available to Chapter sub-heading 35079061 and the effective rate is 8% and accordingly the appellant was required to pay the differential duty of Rs. 39,28,631/-. In response to the said letter, the appellant vide letter dated 22.1.2010 submitted in detail that they had wrongly adopted the classification under the above Heading and the product "Streptokinase" manufactured and cleared by them merits to be classified under 30049084 as a lifesaving drug and it attracts nil rate of duty in terms of exemption Notification No.4/2006-CE r/w Notification No. 21/2002-Cus. According to them,....
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....legal opinion, the appellant has informed the department that they are not liable to pay duty since the produce is exempt from duty as per Notification No. 4/2006 r/w Notification 21/2002. This being the fact, the allegation that the appellant has wrongly availed the credit and suppressed the facts with intent to evade payment of duty cannot sustain. The Show Cause Notice for the period June 2009 to December 2009 has been issued only on 18.7.2012 invoking the extended period of limitation alleging suppression of facts with intent to evade payment of duty. In para 11 of the Show Cause Notice, it is alleged that the appellants willfully misstated in their returns that the product "Streptokinase" is chargeable to excise duty under Chapter 35 a....
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....contention put forward by the ld. counsel for the appellant is that on limitation. On perusal of the records, we find that the appellant has issued a letter dated 1.6.2009 to the department requesting for additional incorporation of finished goods namely "Streptokinase" in their central excise registration. The relevant part of the said letter is reproduced as under:- "Sub: Central Excise - Filing of Application for additional incorporation of finished goods in the Central Excise Registration - Reg. It is to kindly inform you that we M/s. Shasun Chemicals and Drugs Ltd., located at No. 60, Velacherry Main Road, Velachery, Chennai - 600 042 are already registrant before Central Excise with Registration No. AAACS5031LXM001. Subsequent to ....
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....llant. Only later when the appellant issued a letter dated 22.1.2010 explaining that there is no liability to pay duty on the said product, since they would be eligible for the notification benefit, as the goods are correctly classified under Chapter Heading 30049084, the demands have been made to deny the credit availed. After receiving letter dated 22.1.2010, the department has accepted the said classification of the goods under Heading 30049084 and the exemption from payment of duty. Much later, on 18.7.2012, the department has issued the present Show Cause Notice alleging that the appellant has willfully misstated the facts with intention to evade payment of duty. We do not find that the appellant has suppressed or willfully misstated a....