1984 (11) TMI 337 - AT - Central Excise

Issues Involved:
1. Jurisdiction of the Board to continue proceedings under Section 35A.
2. Classification of "hub bolts" under Item 52 or Item 34A of the Central Excise Tariff Schedule.
3. Applicability of exemption Notification No. 99/71.
4. Allegations of hostile discrimination against M/s. Gurmukh Singh and Sons.
5. Relevance of the Tribunal's decision in the Ramdas Motor Transport case.
6. Limitation period for refund claims.

Detailed Analysis:

1. Jurisdiction of the Board to Continue Proceedings:
The appellants argued that the Board's order was without jurisdiction since Section 35A was superseded by Section 35P effective from 11-10-1982. However, the Tribunal noted that sub-section (3) of Section 35P clearly allowed the Board to continue proceedings initiated under Section 35A as if it had not been substituted. Therefore, the Board had jurisdiction to pass the order on 16-4-1984.

2. Classification of "Hub Bolts":
The primary issue was whether "hub bolts" should be classified under Item 52 ("Bolts and Nuts, threaded or tapped, and screws") or Item 34A ("Parts and accessories of motor vehicles not otherwise specified"). The appellants contended that hub bolts were specific parts of motor vehicles and should be classified under Item 34A, which would make them eligible for exemption under Notification No. 99/71. The Board, however, classified them under Item 52. The Tribunal referred to the Bombay High Court's decision in the Simmonds Marshal case, which held that even specialized nuts used in motor vehicles fell under Item 52. The Tribunal concluded that hub bolts, despite their specific use in motor vehicles, were essentially fasteners and thus classifiable under Item 52.

3. Applicability of Exemption Notification No. 99/71:
The appellants argued that hub bolts were exempt from duty under Notification No. 99/71, which exempted goods classifiable under Item 34A. Since the Tribunal upheld the classification of hub bolts under Item 52, the exemption under Notification No. 99/71 was not applicable.

4. Allegations of Hostile Discrimination:
The appellants claimed discriminatory treatment compared to M/s. Gurmukh Singh and Sons, who were allegedly allowed to classify similar products under Item 34A. The Tribunal, referencing the Bombay High Court's decision in the Simmonds Marshal case, held that each case must be decided on its own facts and circumstances, rejecting the argument of hostile discrimination.

5. Relevance of the Tribunal's Decision in the Ramdas Motor Transport Case:
The appellants cited the Tribunal's decision in the Ramdas Motor Transport case, arguing that it implied a different classification for hub bolts prior to the amendment of Item 34A in 1979. The Tribunal acknowledged that the Ramdas case pertained to the post-amendment period and that any incidental observations regarding the pre-amendment period were not decisive. The Tribunal emphasized that the specific classification issue before it was not addressed in the Ramdas case.

6. Limitation Period for Refund Claims:
The appellants argued that the limitation period should not apply due to a common mistake of law. However, the Tribunal, referencing its consistent stance and the Supreme Court's upholding of the decision in Miles India Ltd., maintained that statutory limitations were applicable to refund claims.

Conclusion:
The Tribunal upheld the Board's orders, confirming the classification of hub bolts under Item 52 and rejecting the appeals. The Board's jurisdiction was validated, and the arguments regarding exemption, discrimination, and limitation were dismissed based on established legal principles and precedents.

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