TaxTMI 
TaxTMI 
2024 (2) TMI 75
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....arenhas , Superintendent , Authorised Representative for the Respondent ORDER PER : ANIL G. SHAKKARWAR Above stated four appeals are taken together for decision since they are arising out of common impugned order-in-original dated 30.10.2014. M/s. Kores (India) Ltd. is the main appellant from whom central excise duty was demanded and the other three appellants are those on whom various penalties were imposed. 2. Brief facts of the case are that the appellant M/s. Kores (India) Ltd. was engaged in the manufacture of goods such as carbon paper, stencil paper, tally paper, correction fluid, plasto carbon ink and various types of ink such as duplicating ink, printing ink, stamp pad ink, ballpoint pen ink, ribbon ink, carbon ink etc. Reven....
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....d by M/s. Kores (India) Ltd. and thus undervalued the clearances and as a result, differential duty was demanded from M/s. Kores (India) Ltd. Further, there was another allegation in the show cause notice that on comparison of clearances put together by adding clearances in all the invoices during the particular year and the production of ink as such stated in the balance sheet for that year, there was a huge difference in the quantities and there was allegation that the differential quantity was cleared clandestinely for the financial years 1998-99, 1999- 00 and 2000-01 and as a result, central excise duty to the tune of around Rs.66 lakhs was demanded. There were proposals for imposing penalties on all the four appellants. On contest, the....
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....ssification of goods under the said Tariff. He has further elaborated that in HSN heading 32.15 has been broadly classified into printing ink and other ink. Under printing ink, there are two sub-headings such as black printing ink and other printing ink. All other inks other than printing ink are classified under 3215.90 as others whereas in Central Excise Tariff which is scheduled to the Central Excise Tariff Act, 1985 passed by the Parliament, Chapter Heading 32.15 is divided in only two categories - writing ink under sub-heading 3215.10 and the other category as others under 3215.90. He has submitted that it is very clear that HSN is classifying goods under printing ink and others whereas Central Excise Tariff is classifying goods under ....
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....ld have matched the figures of balance sheet. He has further submitted that Revenue has not conducted any investigations about the difference between the total clearances through invoices and total production reflected in balance sheet and made unsubstantiated allegations. He has relied on the decision of this Tribunal in the case of Giriraj Irosteel Company Pvt. Ltd. vs. CCE, Meerut-II reported at 2019 (370) ELT 1649 (Tri.-All.) and submitted that Hon'ble Allahabad High Court's ruling in the case of Continental Cement Company vs. UOI reported at 2014 (309) ELT 411 (All.) was relied on and it was held that clandestine removal needs to be established by investigation into various aspects stated therein such as dispatch particulars from the r....
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....In our considered view, the Tribunal erred in relying upon the HSN for the purpose of marker inks in classifying them under Chapter Sub-Heading 3215.90 of the said Tariff. The Tribunal failed to appreciate that the entries under the HSN and the entries under the said Tariff are completely different. As mentioned above, it is settled law that when the entries in the HSN and the said Tariff are not aligned, reliance cannot be placed upon HSN for the purpose of classification of goods under the said Tariff. One of the factors on which the Tribunal based its conclusion is the entries in the HSN. The said conclusion in the Order of the Tribunal is, therefore, vitiated and, accordingly, set aside. We agree with the findings recorded by the Commis....