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January 2013

Commissioner of Central Excise, Raipur (C.G) vs. Simplex Casting Ltd. 2012 (285) ELT 365 (Tri.-Del)

By Puloma Dalal, Jayesh Gogri, Chartered Accountants
Reading Time 1 mins
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Wrong classification not challenged when approved by the department does not attain finality.

Facts:

Wrong classification was made by department which the assessee did not challenge. The department issued Show Cause Notice demanding tax under wrong classification. The assessee contested such classification in the reply to the Show Cause Notice. The Commissioner (Appeals) held in favour of assessee. The revenue’s contention revolved only around non-challenge at the time of approval by the Assistant Commissioner.

Held:

The Tribunal dismissed the appeal stating that, only because the jurisdictional Assistant Commissioner classified and approved some goods under wrong heading without any challenge by the assessee, it would not mean that for future also, wrong classification shall continue in respect of such goods. Also, on the receipt of demand of duty vide Show Cause Notice, the assessee challenged the erroneous classification. Therefore, it cannot be said that the assessee had accepted the classification and that the approval attained finality.

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Internal Circular No.1A OF 2013 dated 11-01- 2013

2012 (28) STR 248 (Tri.-Del.) Max India Ltd. vs. Commissioner of Central Excise, Chandigarh.