2019 (12) TMI 470

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....revenue for the sake of convenience. 2. The assessee is engaged in the manufacture of products of Paper and Printing Industry. They were clearing the products without payment of Central Excise duty, as according to them the goods were non excisable goods. After the introduction of new 8 digit Central Excise Tariff Act, 1985 with effect from 1.3.2005, the department observed that items viz., packing and wrapping paper, paper tags and trays manufactured and cleared by the appellant are excisable goods attracting duty. Show Cause Notice was issued to the appellant proposing to classify the goods and also demanding duty thereon. After due process of law, the original authority confirmed the classification of the wrapper and trays under Chapt....

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....ved is from March 2005 to March 2008. The disputed goods namely wrapper, paper tag and tray were not leviable to duty as per Central Excise Tariff prior to 28.2.2005. This fact is admitted by the department. After introduction of the 8 digit Tariff, the present classification under Chapter 48 for paper tags and paper tray has been directed by the department. The assessee was under bonafide belief that the introduction of 8 digit tariff, would not change or affect classification. They entertained the view that Nil rate of duty or exemption which was prevailing as on 28.2.2005 would continue after also. The department had issued a letter to the assessee on 29.4.2008 intimating that the goods are correctly classifiable under Chapter 48 and att....

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....l for assessee has argued on the grounds of limitation. At the foremost, it has to be stated that the main issue is with respect to classification of the goods. There is no dispute that prior to 28.2.2005, the goods did not attract duty. The allegation in SCN is that from 1/3/2005 to 31/3/2008, the assessee failed to disclose value of clearances of these disputed items in their monthly returns. The department has issued letter only on 29/4/2008 to the assessee intimating that the goods are subject to levy of central excise duty. In the said letter, the department states as under :- "It is seen from the records that you have classified the following products under Tariff Heading 49 and claimed exemption from payment of Central Excis....