9911796707
TMI Blog2000 (3) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture of Motor Vehicle Parts and M.C.I. Inserts. It was alleged that the appellants did not file any classification list or did not hold any licence for the manufacture of MCI Inserts which were classifiable under Chapter sub-heading 7302.90. Accordingly, a SCN was issued to the assessee asking him to explain as to why the MCI Inserts should not be classified under Chapter sub-heading 7302.90 and why duty should not be demanded from them and why seized goods should not be confiscated and why penalty should not be imposed. In reply the appellants sought provisional release of the seized goods. The goods were released provisionally after the appellants executing a bond for Rs. 2,83,905/- and after depositing a cash security of Rs. 80,977/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Department. It was also argued that duty was calculated on the cum-duty price and that the Excise Duty element has not been excluded while arriving at the assessable value. The appellants therefore, contended that there was no mens rea and therefore, penalty under Rule 173Q cannot be imposed. 3. Arguing the appeal Shri Sudhir Malhotra, ld. Counsel submitted that he is arguing the appeal on two points. The first point is that the Tribunal has already finally decided that M.C.I. Inserts shall be classifiable under Chapter heading 7307.10. He submits that the ratio of the judgments of this Tribunal in the case of Bakshi Steels Ltd. v. CCE, Jaipur reported in 1994 (71) E.L.T. 1013, in the case of Shivaji Works Ltd. v. CCE, Aurangabad re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall be effected. 6. We have heard the rival submissions. We have perused the case law cited in regard to the classification. We have perused the evidence cited and relied upon by both the sides. We find that in the case of Shivaji Works Ltd. reported in 1994 (69) E.L.T. 674, this Tribunal held that castings of machine parts/motor vehicle parts are classifiable under heading 73.25 which is now equivalent to 7307.10. Again this Tribunal in the case of Hindustan Gas Industries Ltd. reported in 1996 (88) E.L.T. 413 held that inserts used as a raw-material in the manufacture of concrete sleepers, subjected to the processes of annealing in the oil fired furnace, fettling and removing extra burns by grinding etc., not becomes any one of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bed plates, ties and other material specialised for jointing or fixing rails. 8. Before the introduction of the new tariff effective from 1-3-1986, these inserts were classified as castings of iron and steel. They were not being classified under Tariff Item 68 of the then tariff. In the case of Tata Iron Steel Co. Ltd. v. Union of India Others reported in 1988 (35) E.L.T. 605, the Hon'ble Supreme Court had gone in details while dealing with the forged products in rough machined condition. The Hon'ble Supreme Court observed that machining and polishing is done to remove excess surface, skin from the forged products and was incidental or ancillary to the manufacture of forged products as per Section 2(f) of the Central Excise Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question of jurisdiction is concerned, our attention was drawn to Courtroom Highlights reported in 1997 (92) E.L.T. A.143 wherein the Apex Court dismissed the Civil Appeal filed by M/s. K.L.J. Plastics Ltd., Hyderabad. In that case this Tribunal had held - That the demand show cause notice issued by the Supdt. of Central Excise under Section 11A of the Central Excise Act, 1944 for a period of six months was valid, though it had made allegations of suppression of facts etc. with intent to evade payment of duty. This was held to follow from the judgment of the Karnataka High Court in the case of Reletronics Ltd. v Asstt. Collector of Central Excise which has been upheld by the Supreme Court as reported in 1993 (64) E.L.T. A134 and in the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
