1. The appellants who are manufacturing Epoxy Cast Components i.e. crotch belly, bushing etc. submitted classification list in the year 1987 for the said articles contending that it was classifiable under sub-heading 3926.90. For other articles, namely insulating fittings for electrical machines, appliances or equipment, being fittings wholly insulating materials, being manufactured by the appellant, it was classifiable by sub-heading 8547.00. On that classification list following endorsement was made by the concerned officer:
"The party is engaged in the manufacture of Glass reinforced laminates which are being used as insulating material and is of the view that these are classifiable under chapter sub-heading No. 8547.00. But the goods as correctly classifiable under Chapter No. (7014.00) as Boards clarification vide letter No. F. No. 132/3/87-CC4 (Circular No. 8187-CC4), dated 6-7-87. It is therefore requested that the matter may please be considered at higher level and proper procedure of natural justice may be followed for the finalisation of classification list."
2. It is contended that after checking the same, the Department accepted it.
3. Thereafter, show cause notice was issued raising demand and for changing classification. After adjudicating the demands, penalty was imposed. Hence, the appellants preferred appeals before the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (for short the Tribunal).
4. Heading No. 85.47 reads thus:
"85.47. Insulating fittings for electrical machines, appliances or equipment, being fittings wholly of insulating material apart from any minor components of metal (for example, threaded sockets) incorporated during moulding solely for purposes of assembly, other than insulators of heading No. 85.46; electrical conduit tubing and joints therefore, of base metal lined with insulating material."
5. The Tribunal after considering arguments raised by the parties arrived at the conclusion that the goods manufactured by the petitioners were classifiable under Heading 85.47. It was not disputed before the Tribunal that the goods in question were insulated fittings for electrical machines but what was claimed was that these goods were not made wholly of insulating material and to which plasticisers, fillers etc., have been added for the purpose of bringing down the cast. This argument was rightly rejected by the Tribunal by considering the wording of Heading 85.47. The Tribunal also relied upon the decision rendered by the Bombay High Court in X. L. Telecom Pvt. Ltd. v. Union of India (1994 (70) ELT 530 (Bom)), wherein it was held that such goods were classifiable under sub-heading 85.47 as insulating fittings. It is to be noted that in that case, before the High Court, it was the contention of the Department that such goods, namely, components for cable jointing kits were classifiable as plastic materials under sub-heading 39.26 of the Customs Tariff Act
6. The learned Counsel for the appellants was not in a position to point out how the said findings of fact recorded by the Tribunal were erroneous. Hence, in our view, the said findings rendered by the Tribunal do not call for interference.
7. Next question is - whether the Tribunal was justified in invoking first proviso to Sub-section (1) of S.11A. Prima facie, it is apparent that there was no justifiable reason for invoking larger period of limitation. There is no suppression on the part of the appellant-firm in mentioning the goods manufactured by it. The appellant claimed it on the ground that the goods manufactured by it were other articles of plastic. For the insulating fittings manufactured by it, the tariff entry was correctly stated. The concerned officers of the Department, as noted above, after verification approved the said classification list. This Court has repeatedly held that for invoking extended period of limitation under the said provision duty should not have been paid, short-levied or short-paid by suppression of fact or in contravention of any provision or rules but there should be wilful suppression. (Re: Easland Combines, Coimbatore v. The Collector of Central Excise, Coimbatore, (2003 (152) ELT 39 (SC)) [LQ/SC/2003/20] , C. A. No. 2693 of 2000 etc. decided on 13-1-2003). By merely claiming it under heading 3926.90 it cannot be said that there was any wilful misstatement or suppression of fact. Hence, there was no justifiable ground for the Tribunal for invoking the first proviso to Sub-section (1) of S.11A of the.
8. In the result, the appeals are allowed, impugned orders passed by the Tribunal are modified. Order imposing penalty is set aside. It would be open for the Department to work out and recover the amount payable for the period of six months from the date of the issue of show cause notice. Ordered accordingly.
C. A. No. 2461, 2463-65 and 2471 of 1996
9. These appeals are against the classification of the goods manufactured by the appellant. For the reasons recorded above, it cannot be stated that the classification is in any way illegal or erroneous. Hence, these appeals are dismissed.
10. There shall be no order as to costs in all the appeals.
