9911796707
TMI Blog2000 (10) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... ny M/s. Special Engg. Services Ltd. for the manufacture of seats, who in turn gave the work to two job workers, M/s. Kumar Agencies as also to the appellants. The appellants manufactured and cleared the steel seats without payment of duty under Notification Nos. 61/86 and 80/90-C.E. which granted exemption to steel seats made partly or wholly of steel in or in relation to the manufacture of which any processes ordinarily carried on with the aid of power, and designed for use in automobiles. Inasmuch as the steel seats manufactured by the appellants classifiable under Heading 94.01 were to be used in automobiles, the appellant cleared the same without payment of duty. 1.3 The Revenue entertained a view that the said steel seats are not co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dentical is the situation in respect of steel seats. 3. Referring to the reasoning adopted by the Commissioner, ld. Advocate argues that the benefit of the notification in question have been denied to the appellants on two grounds. First that the cushion and squab are manufactured by the party separately as par the designs supplied by M/s. Hindusthan Motors and as per part numbers given by M/s. Hindusthan Motors. He submits that sending of the seats in knocked down condition by the appellants is irrelevant. Orders were always in sets consisting of the back portion and the bottom portion and were executed depending upon how much material was ready at the factory. Despatching the goods in knocked down condition cannot decide the classificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urer which was for the complete seats. 5. Arguing on the limitation aspect Shri Bagaria submits that the main order was placed by M/s. Hindusthan Motors on Special Engg. Services Ltd., who filed a classification list claiming exemption to the steel seats, which was approved by the Central Excise officers. The said Special Engg. Services Ltd. also placed orders on the appellants as also on one of the other job worker M/s. Kumar Agencies. M/s. Kumar Agencies filed a classification list claiming exemption under the notification in question, which exemption was granted to them. These facts were enough for the appellants to entertain a bona fide impression that steel seats did not attract duty. It was in these circumstances that no formality w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the appellant did not inform about the activity of manufacture undertaken by them to the Central Excise Department. No licence/registration was taken and no declaration was filed by them. This non-action on the part of the appellants amounts to suppression of facts with an intention to evade payment of duty. The activities undertaken by the appellants came to light when the Central Excise officers visited their factory and in these circumstances extended period has justifiably been invoked by the Revenue. Reference has also been made to a few decision of the Tribunal. He submits that the appellants cannot take the benefit of the declaration made by M/s. Kumar Agencies and the approval of classification list filed by them. 8. We have co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o not feel convinced with the above reasoning of the adjudicating authority. Admittedly the seats (the bottom and the back portion) have been cleared from the appellants' factory without joining the two portions together because of the simple reason that it is definitely convenient for the automobile manufacturer to place the two parts in the motor vehicle during the course of manufacture of the vehicle in its own factory. For the same reason different part numbers have been given so as to make it convenient for the motor vehicle manufacturer to adjust the back and the bottom portion while fixing the two in the motor vehicle and to make the two portions fit into each other properly. Shri Bagaria has demonstrated before us from the various d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption notifications. 11. Apart from the merits of the case, the appellants have a strong case on limitation also. Admittedly, the classification list filed by Special Engg. Services Ltd. claiming the benefit of the notifications in respect of the steel seats was approved by the Central Excise officers in their favour. Similarly, the classification list filed by M/s. Kumar Agencies was also approved. The said facts were sufficient enough for the appellant, who falls under the same Division of central excise, to entertain a bona fide belief that steel seats were exempted and as such no excise formalities are required to be observed by them. Reference to the various Supreme Court's decisions by the ld. Advocate are to the effect that for in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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