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TMI Blog1994 (3) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... ried out by the assessees on such iron inserts. The assessees contend that the iron inserts fall under Tariff Heading 7301.10 as iron castings not otherwise specified. On the other hand, the Revenue contends that iron inserts having a specific use for fixing rails fall under Tariff Heading 7302.90 as other materials for fixing rails. 2. Ld. Advocate Shri V. Sridharan for the assessees has argued that insert is a part of the sleeper. It does not carry out any function of fastening the rails with the sleepers. Function of fastening, he submits is carried out by the `pandrol clip . He therefore, submits that Tariff Heading 7302.90 would not be appropriate for the product. Since there is no other suitable heading, Tariff Heading 7307.10 wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opriately under Tariff Heading 7302.90. Although the goods under consideration in Nagpur Engineering (supra) were different i.e. `anti-creep bearing plate but paras 4 5 would have a bearing on deciding the question of classification in this matter as well. The view sought to be taken by the ld. Advocate is only from a very narrow angle to the word `fixing described in Tariff Heading 73.02. He wants to restrict this entry to the items which can be brought on site for laying the track. We do not feel that the wide words of the headings, in the context of discussions in paras 4 5 in Nagpur Engineering, could be interpreted in the narrow sense advanced by the ld. Advocate. Closely examining his contention, we notice that `insert is also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. We have carefully considered the pleas advanced from both the sides. In order to appreciate the plea of the ld. Advocate for the appellant/assessee, we reproduce below paras 11 12 of Nagpur Engineering : 11. We also note that the supply of anti-creep bearing plates and brake blocks is almost exclusively to the railways. The Ministry of Finance, Department of Revenue Circular dt. 8-2-1987 referred to by the appellants also clarified that castings which have not been subjected to processes other than the following should be classified only under Heading 73.07. (a)removal of runners and risers (b)surface cleaning and removal of surface defects (c)chipping, filing or grinding to remove excess material (d)annealing and stress re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility of the benefit of Notification No. 208/83 even subsequent to 1-3-1986 when castings fall under Heading 73.07. This bona fide belief is further fortified by the fact that HSN Explanatory Notes were available only in September, 1985 and complete alignment of the Central Excise Tariff with the HSN took place only in 1986. In the light of the above discussion, we hold that the extended period of limitation will not be attracted in these cases. Consequently, the demands in Appeal Nos. E/1516/91 and Appeal No. E/1517/91 are entirely barred by limitation. In Appeal No. E/2788/88 and Appeal No. E/2846/91, the demand is confirmed for a period of six months prior to the issue of show-cause notice . 7. We are satisfied having regard to the en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orities have not done. We have gone through the impugned order. We have heard the Counsels from both sides. We are not inclined to agree with the appellant Collector that, having regard to the facts and circumstances, there is a case for confiscation of goods lying in the custody of railways and for imposition of penalty. We have already held, while dealing with the question of time bar, that there is no wilful suppression and mis-statement of the facts on the parts of the assessees and they were acting under a bona fide belief for classification of the goods under 7307.10. We, therefore, regid the prayers, of the appellant Collector for confiscation of the goods and imposition of penalty in Appeal No. E/2631/89-B1. There is, however, one m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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