By TIOL News Service

NEW DELHI, MAY 07, 2016: THE dispute is about the classification of goods known as "Guar Gum and Guar Dal Flour".

The Tribunal hadon 16.02.2005 - 2005-TIOL-317-CESTAT-MUM decided the case in favour of the assessee by upholding the classification under chapter heading 1101.00 [Tariff Rate Nil]. The Tribunal had also held that the demand, in any case, was time barred.

The department filed a Civil Appeal against this order.

The Senior counsel appearing for the Department drew the attention of the Apex Court to the Larger Bench decision in the case of Krap Chem Pvt. Ltd. vs. Commissioner of Central Excise & Service Tax, Daman, Rajkot - 2015-TIOL-2211-CESTAT-AHM-LB, wherein the Tribunal had taken a view which is in favour of the Revenue inasmuch it is held that the aforesaid goods "Guar Gum and Guar Dal Flour" are correctly classifiable under Chapter sub-heading 1301.10 and chargeable to duty.

It is also mentioned that the aforesaid judgment of the larger Bench was not challenged by filing appeal (by the assessee) in the said case.

The Supreme Court observed -

"We need not go into the aforesaid issue inasmuch as the assessee would succeed on the ground of limitation itself because of the reason that the judgment of the Tribunal on the issue of limitation is perfectly justified inasmuch as at the relevant time there was conflicting judgment of the Tribunal and thus the action of the respondent in classifying the goods was clearly bonafide and larger period of limitation would not be available to the Department."

The Revenue appeal was dismissed.

In passing: Incidentally, in the case decided by the Larger Bench, the appeal was partly allowed on limitation.

(See 2016-TIOL-58-SC-CX)