2026-VIL-1409-CESTAT-KOL-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Retrospective change in classification of goods - Absence of statutory provision for issuing Show Cause Notice for reclassification - Appellant manufactures various kinds of mobile lifting machinery including Hydraulic Truck Cranes and Rough-terrain Hydraulic Truck Cranes and has been clearing them for several years since introduction of 8-digit tariff entry in February 2005 by classifying the same under Central Excise Tariff Item 8426 12 00 - Department formed opinion that cranes were being mis-classified under CETI 8426 12 00 when they should have been classified under CETI 8426 41 00 as other machinery self-propelled on tyres and issued Show Cause Notice with retrospective effect proposing change of classification - Whether a Show Cause Notice can be issued for change in classification of goods without invoking proper provisions of Central Excise Act and whether classification can be changed retrospectively - HELD - There is no provision in the Central Excise Act 1944 under which a SCN can be issued for mere change in classification of goods declared by an assessee. Only under Section 11A of the Central Excise Act, 1944 the Proper Officer can issue SCN proposing change in classification of goods in cases of short or non-payment of duty. The impugned Show Cause Notice has not invoked any such provision. No such statutory authority exists for changing classification retrospectively - Show Cause Notice issued for mere change in classification without invoking any statutory provision cannot be sustained in the eyes of law - The Show Cause Notice is not sustainable and the impugned order passed thereon is set aside - The appeal is allowed
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