9911796707
TMI Blog1998 (9) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... e and marketing of parts of capacitors and capacitor elements. Besides, manufacture, they are also having trading activities covering the aspects of supply of raw materials to other units for plastic components and procure therefrom, parts of capacitors to be sold to the customers. Their manufacturing unit is functioning in the small scale industries, Karnataka. Similarly, the other units who supply their manufactured goods there are also functioning in the small scale sector. 2. As far back as 20-2-1985, they had filed a declaration in the then prescribed form to the Central Excise, detailing the goods manufactured, etc., (This declaration was accepted by the Department on 7-4-1985 after due verification by the Head Quarters Inspectors. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5A was totally exempted under Notification 182/82, dated 11-5-1982. He also explained that in view of the total exemption no declaration was filed until it was reclassified under 85.32. 6. Collector issued a show cause notice dated 16-6-1989. 7. In reply to the show cause notice they made a written submission wherein they brought out the fact of manufacturing and marketing of Parts of capacities produced by them besides those which constitute purely trading activity. At that time they also disputed the classification of goods manufactured by us under Chapter 85 instead of Chapter 39. They were under the impression that the goods become classifiable under Chapter 39, under which the plastics were brought in. They missed the point that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other manufacturers loose their independent identity. It may also to be pointed out that their units have been manufacturing and marketing goods of their own. Besides invoicing us their goods manufactured out of our raw materials, sold to them. Thus it cannot be gainsaid that the transaction between the manufacturers and themselves were not in the nature of a transaction between principal to principal. Thus clubbing all the turnover and trading account as well as the manufacturing account is manifestly incorrect. 12. Ld. DR drew attention towards the impugned Order and reiterated the department s view. 13. Ld. Additional Collector has passed a detailed Order regarding reasons for the findings. 14. In so far as the Classification of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption of the goods under Heading No. 85.32 reads as follows :- 85.32 8532.00 Electrical capacitors, fixed variable or adjustable (preset) And the ld. DR is correct in pointing that the ld. Additional Collector was right in classifying the items under this heading. In view of Section Note 2 ofSection (xvi). 19. However, in so far as the demand is concerned, the appellants plea that the articles being of plastic and the classification under the old tariff, being under Tariff Item 15A they believed that they were classifiable under Chapter 39 and exempted from duty is note worthy. The department has not been able to prove go beyond doubt that there was a deliberate suppression or mis-statement with the intention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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