Hon'ble Judges/Coram:
Deepak Gupta and Aniruddha Bose

JUDGMENT

Aniruddha Bose, J.

1. These two appeals against the decision of the Customs Excise & Service Tax Appellate Tribunal (CESTAT) rendered on 16^th July, 2008 require adjudication on the question as to whether "car matting" would come within Chapter 57 of the First Schedule to the Central Excise Tariff Act, 1985 under the heading "Carpets and Other Textile Floor Coverings" or they would be classified under Chapter 87 thereof, which relates to "Vehicles other than Railway or Tramway Rolling-Stock and Parts and Accessories Thereof". The appeals are against a common decision and we shall also deal with both these appeals together in this judgment. The Respondent-Assessee want their goods to be placed under Chapter heading 5703.90. We shall refer to the specific entries against this item later in the judgment. The Respondent, at the material point of time were engaged in the business of manufacture of textile floor coverings and car matting. The subject-goods have been referred to interchangeably by the revenue also as car mattings and car carpets. The Respondent, at the material time, were clearing the goods declaring them to be goods against Heading No. 570390.90. Effective rate of excise duty on goods under that entry was 8% and education cess at the applicable rate for the subject period. We find this rate of duty, inter-alia, from the order of the Commissioner dealing with the first and the second show-cause notices. The rate of basic excise duty would have been 16% apart from education cess if these goods were classified against goods specified in heading No. 8708.99.00. Altogether three show-cause-notices were issued against the Respondent over clearance of goods under the said heading. These notices required them to answer as to why they should not be charged the differential rate of duty and interest. We would like to point out here that in the show-cause notices, the respective chapter sub-headings have been referred to as 8708.99.00 and 570390.90 and in the order of the Tribunal also, the sub-headings have been referred to as such. But the authorities themselves in certain places described the sub-headings in shorter numerical forms, as 5703.90 and 8708.00. We find these minor variations in the paper-book. But this variation of the subheadings represented in numerical form is not of any significance so far as adjudication of these appeals are concerned. The Respondent were also to answer as to why penalty should not be imposed upon them in terms of Section 38A of the Central Excise Act, 1944 read with Rule 25 of the Rules made thereunder. The first show-cause notice is dated 9^th August, 2005 in regard to clearance of goods made during the period between 9^th July, 2004 and 31^st March, 2005. They had cleared altogether 8,65,777 pieces of those items in different sizes in that period. The second show-cause notice was issued on 2^nd May, 2006 and related to clearance of 12,02,482 pieces of the same goods for the period between 1^st April, 2005 and 31^st January, 2006. The third show-cause notice is of 7^th