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TMI Blog1996 (2) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... g gasket which could not be considered as part of the water pump. 2. Shri B. Shivkumar, Managing Director of the Appellant Company pleaded that the appellants manufactured both water pump and water pump kits . He pleaded that in respect of the kits, while a number of parts are manufactured by themselves, some have been procured from outside and these parts are subsequently put in a kit form and sold under the name of water pump repair kit. The same is ordered for by their customers under that name and the whole kit is used as a replacement of vital parts for the water pump whenever the water pump breaks down or its efficiency comes down. He pleaded that the appellants had not cleared mounting gasket along with water pump and the mount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be considered as not a part of the water pump and reiterated in this context the use of mounting gasket for repair of the water pump and therefore, he pleaded mounting gasket should be deemed to be part of the repair kit notwithstanding the fact that the item by itself may not fall under Heading 8413. He pleaded that in any case there was no warrant for levy of penalty and also for invoking the longer period of limitation as the appellants did not wilfully or intentionally suppress any fact. He pleaded that mounting gasket was purchased by the appellants from outside and they have included the value of the same in the repair kit and paid higher duty when the same is cleared as part of the repair kit. He pleaded that they have taken MODVAT C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading. This heading covers pump for liquids and parts thereof and therefore, mounting gasket cannot be considered as part of water pump and therefore the same should not have been assessed under Heading 8413. Repair kit, I observe, by itself is not an item of machinery or apparatus which can be used as such functionally. It is only a collection of parts which have to be used for repair of water pump to make the pump functional. Assessment of the same under one Heading 8413 is not correct. At this stage Shri Shivkumar informs that the appellants are clearing the goods separately and the mounting gasket as a bought out item is not charged to duty. In view of this, I hold that the appellants are not eligible for MODVAT Credit on mounting gaske ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arts which formed the part of the kit. In any case, the appellants on their understanding of what would constitute a kit for repairing [water pump] included the gasket also as a part of the same. The way the appellants have explained the use of the mounting gasket as a part of the repair kit for the repair of water pump it has to be held that it was a genuine misunderstanding of the legal position. The authorities themselves laboured under the wrong interpretation of the tariff by assessing the repair kit under 8413 when it was not functionally as an independent entity but only a set of parts put together and only some of which were assessable under Tariff Heading 8413. I, therefore, hold that in this background the appellants cannot be sai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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