9911796707
TMI Blog2000 (7) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... of the products manufactured by them as under, confirmed the demand of central excise duty amounting to Rs. 77,66,004/- and imposed a penalty of Rs. 5 lakhs :- Name of the product Heading sought by Assessee Heading changed by the Commissioner Industrial Valve for water, or liquid (other than for refrigerating and air conditioning appliances) 8481.80 8481.10 Parts of valves 8481.99 8481.91 Side glass for pipe 8481.80 8418.90 Filtering & Purifying apparatus for liquid 8421.10 8418.90 Parts of strainers/ Filtering apparatus 8421.90 8418.90 Pulley & Flywheels 8483.00 8418.90 Automatic regulating apparatus water/air flow switches 9032.80 9032.11 3. While changing the classification the Commissioner held that in terms of Note 5-E of Chapter 84, machines or appliances performing a specified function are to be classified in the heading appropriate to their respective function; that the products manufactured by the assessee are primarily meant for air conditioning and refrigeration plants though they may have other applications also; that major chunk of their production is being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is only in respect of automatic data processing machine. 6. Regarding impugned goods learned Advocate mentioned that the Assessee manufacture industrial valves for water or liquid oil and these are other than expansion valve or solenoid valves; that these valves are normal plumbering material; that these are rightly classifiable under sub-heading 8481.80 and accordingly parts of such valves would be classifiable under Heading 8481.99; that similarly Filtering and Purifying apparatus for liquid are classifiable under sub-heading 8421.10 as there is a specific entry in the Tariff; that the parts of such filtering apparatus has to be classified under sub-heading 8421.90 as there is no other heading under which they can fall; that any item used for the purpose of installation cannot be considered as parts and accessories of refrigeration and air conditioning machinery; that the valves manufactured by them are only used during installation and errection of various systems; that these valves are placed at distance from the main system and the purpose is to regulate and control the flow of liquid water generated from the main system; that these valves have no connection with coolin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod from April, 1993 to December, 1996; that the Assessee always considered the impugned product as having multi purpose function and in accordance with this belief they had filed the classification list from time to time; that they had filed copies of invoices along with RT-12 returns; that queries were raised by Range Supdt. under letter dated 8-9-1995 before according approval to the classification list; that after considering the reply and after examining the goods the classification list was duly approved by accepting the classification as declared by them; that accordingly there could not be wilful mis-declaration or suppression on their part; that in any case except in respect of Sl. No. 1 of the classification list relating to industrial valves they had not mentioned in respect of other goods that these were meant for other than refrigerating and air conditioning appliances and as such the mis-declaration, if any, cannot be alleged in respect of all goods other than industrial valves. Learned Advocate relied upon the decision in the case of Swelore Engineering (P) Ltd. v. C.C.E., Ahmedabad, 2000 (119) E.L.T. 481 (Tri.) = 2000 (37) RLT 727, wherein it was held that demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r conditioning and refrigeration engineers, the disclosure made by them in their classification list that the goods were not meant for air conditioning, etc. was not correct and the actual use of the goods was suppressed or mis-declared and as such extended period of limitation is invokable. In respect of appeal filed by Revenue the learned SDR submitted that once the Commissioner held that the assessee had mis-declared and suppressed the facts with intent to evade payment of duty it was necessary for him to impose the mandatory penalty equal to the amount of duty confirmed in terms of Section 11AC of the Central Excise Act; that once duty is re-determined in terms of Section 11A(1) on or after October, 1996 the Commissioner should have demanded interest under Section 11AB of the Act. 8. In reply the learned Advocate submitted that Note 5 to Section XVI only provides that the machine, machinery, plant, equipment, apparatus or appliances are covered by the expression machines and would fall under Heading 84 or 85; that system installed at site is not excisable commodity because of its immoveable character and are not covered by Chapter 84 or 85 and as such Note 5 will have no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g system and not in air conditioning machinery. Note 5 to Section 16 defines the expression machines used in Chapter 84 and 85 by providing that machine means, any machine, machinery, plant, equipment, apparatus or appliances cited in the headings of Chapter 84 or Chapter 85. This Note does not advance the case of the Revenue that wherever any system is installed everything used therein would become part of that system. The department has not brought sufficient evidence on record to prove their case that the valves manufactured by the Assessee are expansion valves or solenoid valves classifiable under sub-heading 8481.10. On the other hand the Assessee has brought on record also the certificates from two Chartered Engineers who have certified that the valves and strainers are used for filteration or to control the process of flow of fluids and they have also shown their application in various industries. This has also not been controverted by the Revenue. We are, therefore, of the view that the industrial valves manufactured by the Assessee and parts thereof will be classifiable under sub-heading 8481.80 and 8481.99 respectively as claimed by the Assessee company. Similarly, side g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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