M.K. Ashok Kumar Vs Commissioner of GST and Central Excise (CESTAT Chennai)
CESTAT Chennai held that Enriched Omega 3 Fatty Acid (Fish Oil – Ethyl Ester) and Enriched Omega 3 Fatty Acid-Powder (Fish Oil – Ethyl Ester-Powder) are classifiable under CETH 1516 1000 and not under CETH 3824 9090 as contested by department.
Facts- The Appellants are receiving purified fish oil from M/s. Arbee Biomarine Extracts Pvt. Ltd. and are engaged in further purifying and concentrating the Omega 3 content and supplying the same as Fish Oil – Ethyl Ester (EE) with variable Omega-3 content, classifying their final products under Heading 1504 of the Central Excise Tariff Act, 1985 (CETA). Though the Appellants have been registered with the Central Excise Department since 2006 for their other final products, they started paying Central Excise duty of 1% or 2% as per Notification No. 1/2011-CE dated 01.03.2011 and Notification No. 16/2012-CE dated 17.03.2012, for the impugned goods from 2011 till June 2017, till the introduction of GST.
A Show Cause Notice dated 05.08.2015 was issued, proposing, re-classification of EE under CETH 3824 90 90 as against CETH 1504 20 20 / 1504 20 90, recovery of Excise duty along with interest and penalty and personal penalty on Mr. M. K. Ashok Kumar, AGM of M/s. Arjuna. The notices culminated into the impugned Orders-in-Original dated 29.09.2016 confirming the entire demand along with appropriate interest and imposing equal penalty. Aggrieved by the Order-in-Original, the Appellant had preferred an appeal before the Commissioner (Appeals), where the entire demand, interest and penalty were held against them in toto. Being aggrieved, the present appeal is filed.
