Agricultural Equipment Classification Dispute: Demand Dismissed Due to Time Bar; Assessee Entitled to CENVAT Credit.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The appellant classified goods, gears for rotary tiller and parts of rotary tiller, under central excise sub-heading 82349090 instead of heading 848340000. The demand was set aside on the ground of time limitation. The Tribunal held that when there is a dispute of classification, malafide intention cannot be attributed to the assessee. The assessee recorded all transactions in books, and there was no suppression of facts or malafide intention for misclassification. The assessee was entitled to CENVAT credit on inputs used for manufacturing the final product. The classification of goods meant for agricultural equipment is highly debatable. In case of interpretation of classification, the extended period of limitation shall not apply, and the.........