The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai bench has directed the Central Board of Indirect Taxes and Customs (CBIC) to take appropriate measures to take care of issues relating to non-following of judicial decisions by the excise department. The appellant, Asmaco Industries Limited, is in the business of manufacturing of ‘tape’ of several varieties and proceedings were initiated against them for having cleared ‘masking tape’ without payment of duties of central excise on the claim that these had been merely slit from the ‘jumbo rolls’ imported on payment of appropriate duties of customs. The excise department alleged that the ‘masking tape’, liable to duty of 16% corresponding to sub-heading 4823 90 of the Schedule to Central Excise Tariff Act, 1985.
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