QUINN INDIA LTD Vs. COMMISSIONER OF CENTRAL EXCISE HYDERABAD
LAWS(SC)-2006-5-102
SUPREME COURT OF INDIA
Decided on May 11,2006

QUINN INDIA LTD. Appellant
VERSUS
COMMISSIONER OF CENTRAL EXCISE, HYDERABAD Respondents





Cited Judgements :-

R K REFINERIES AND METAL P LTD VS. BISHWANATH PROSAD AGARWAL [LAWS(CAL)-2007-8-11] [REFERRED TO]
SHREE RENUKA SUGARS LTD. VS. COMMISSIONER OF CUSTOMS, MANGALORE [LAWS(CE)-2012-4-42] [REFERRED TO]
PONDS INDIA LTD VS. COMMISSIONER OF TRADE TAX [LAWS(SC)-2008-5-70] [REFERRED TO]


JUDGEMENT

Lokeshwar Singh Panta, J. - (1.)M/s. Quinn India Limited - the appellant-assessee has filed the present Statutory appeal under Section 35L of the Central Excise Act, 1944 (for short "the Act") against the Final Order No. 1860/2000 dated 22.12.2000 recorded by the Customs, Excise, Gold (Control) Appellate Tribunal, South Zone Bench, Chennai (hereinafter referred to as "the Tribunal") in Civil Appeal Nos. E/1299/9 4-C and E/CO/366/94-C. By the impugned order, the Tribunal has allowed the appeal filed by the Commissioner of Central Excise, Hyderabad (hereinafter referred to as "the Revenue") and set aside the order - Appeal No. 2/94(H)(D) CE dated 28.2.1994 of the Collector of Central Excise (Appeals).
(2.)The assessee was engaged in the manufacture of Penetrator -4893 falling under tariff item No. 68 of the old tariff since 1980 to 1986. The assessee was paying the excise duty on the product till the new tariff was introduced. After the new tariff, the product was being cleared under sub- heading No. 3801.19 as finishing agents, Dye Carriers to accelerate the dying or fixing of dyestuff and other products and preparations of kind used in textile, paper, leather or like newspapers not elsewhere specified or included. On 6.5.1986, the assessee filed a new classification list under the Chapter - sub-heading No. 3402.90 and claimed that the earlier classification was under a wrong impression. The classification list dated 6.5.1986 was approved by the Assistant Collector on the basis of the note given by the Chemical Examiner in his Report dated 6.10.1981 which came to the knowledge of the assessee in the year 1986. Therefore, the assessee changed the classification to the appropriate tariff item.
(3.)A Show Cause Notice (SCN) dated 4.6.1991 was issued by the Revenue directing the assessee to pay a sum of Rs. 1,24,094.45p. as central excise duty for the period May, 1986 to September, 1990 invoking larger period under Section 11A of the Act. During pendency of the proceedings, the Revenue drew another sample of the product of the assessee and sent it to the Central Revenue Control Laboratory (CRCL) at Delhi to the Chief Chemist for his opinion. The Chief Chemist vide his Report dated 2.4.1992 opined that the samples had surface active properties. The assessee filed its reply to the show cause notice, inter alia, contending that prior to 28.2.1986 they were classifying their product Penetrator 4893 under tariff item No. 68 and with the introduction of new tariff it was classified under heading 3801.19. On 5.5.1986, the assessee filed a fresh classification list based on the Report of the Chemical Analyst classifying the product under item No. 3402.90. They explained the process of manufacture of the product clarifying that the product is a wetting agent. Further, it was contended that the product was only an auxiliary aid for improving the penetration process of dye solvent. The Adjudicating Authority vide order dated 4.6.1991 relying upon the opinion of the Chemical Examiners Test Report came to the conclusion that the classification of Penetrator manufactured by the assessee would fall under heading 3402.90. The show cause notice was, accordingly, discharged and the proceedings initiated in OR No. 74/91 Adjn. were dropped.


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