9911796707
TMI Blog1996 (11) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... er and are being disposed of through this common order. 3. The appellants manufacture inter alia quartz analog watches. For this purpose they imported several consignments of what were claimed to be watch movements. These goods were assessed to duty under Tariff Item 9110.11. However, a demand notice was issued to them on the ground that step motors are classifiable under Chapter 8501 and therefore, exemption to these step motors was not available to the appellants under Notification No. 43/85, dated 28-2-1985 as amended. The demand was confirmed by the lower authorities. Collector (Appeals) upheld the order. Hence this appeal. 4. Arguing for the appellants, ld. Advocate submits that the department has erred in holding against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He further submits that Chapter Note 91 clearly excludes such type of movement from purview of Chapter 91 in terms of Note 1(G) of Chapter 91. 6. We have heard both sides. We have also perused diagrams of the various components claimed to constitute watch movements in unassembled condition as these were imported. Ld. Advocate also presented in the Court the actual specimens of all the components which together would qualify as watch movements. We first take up the question relating to scope of notification in relation to components. Notification 43/85, dated 28-2-1985 as amended exempts : "Components of mechanical wrist watches and quartz analog wrist watches (excluding semi-knocked down packs, completely knocked down packs, and tho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctric motors within the meaning of Chapter 85 as amplified by exemption. In fact we note that 8501 refers to electric motors and generators of various output and department claims that these motors fall under Chapter 8501.10 as motors of an output not exceeding 37 KVA. We note that department has not led any evidence to prove that the goods which have been alleged to be electric motors have a voltage not exceeding 375 KVA for classification under 8501.10. Moreover, we find considerable force in the argument of ld. Advocate that the impugned goods i.e. Rotor, Stator and Coil do not come into existence during the process of assembly of watch movements as an electric motor. In view of this, we are of the view that these three parts imported se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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