9911796707
TMI Blog2001 (10) TMI 928X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed by the Commissioner (Adjudication) in the impugned order and whether benefit of Notification No. 67/95-C.E., dated 16-3-95 is available to the said parts/components. 2. Shri V. Lakshmikumaran, ld. Advocate, submitted that the appellants have been classifying the parts used in the manufacture of Harvester Combine under the same sub-heading 8433.00 which is applicable to the Harvester Combine since these parts were suitable for use solely or principally with the Harvester Combine; that a conjoint reading of the various Notes to Section XVI of the Tariff would indicate that if an item is suitable for use solely or principally with a particular kind of machine, then the parts are to be classified with machine of that kind; that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be considered as identical to the goods captively consumed and the determination of value has to be made on the basis of cost construction method under Rule 6(b)(ii) of the Central Excise (Valuation) Rules, 1975. He also contended that in any case Modvat credit is admissible to them if duty is demanded from them, and reliance was placed on a number of decisions including Chamundi Steel Re-Rolling Mills v. CCE [1996 (81) E.L.T. 563 (Tribunal) = 1994 (3) RLT 855 (T)] and CCE Chandigarh v. Ganesh Foundry Works,.1996 (12) RLT 781. Finally, he submitted that since 1975, they were under the impression that parts of Harvester Combine are exempted and as such no penalty is imposable; that in any case since the question of interpretation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 996 (81) E.L.T. 336 (T). 4. In reply, the learned Counsel relied upon the decision of the Larger Bench in the case of Kamakhya Steels (P) Ltd. v. CCE, Meerut [2000 (121) E.L.T. 247 (T) = 2000 (40) RLT 575]. 5. We have considered the submissions of both the sides. Note (2) to Section XVI of the Tariff contains the principles for the classification of parts of machine. Note 2(b) will be applicable only if the parts of machines cannot be classified as per principle laid down in Note 2(a) which provides that parts, which are goods, included in any of the Headings of Chapter 84 or 85 are in all cases to be classified in their respective headings. A perusal of the list of the impugned parts reveals that some of them are included specifically ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale as spare parts. We, therefore, direct the Commissioner to redetermine the assessable value of parts following the decision in the case of Ashok Leyland case as the captive consumption of parts used in the manufacture of Harvester Combine is nothing but used as original equipment. It is well settled law that if a product was regarded as exempted from payment of duty and subsequently, it is charged to Central Excise duty, Modvat credit of the duty paid on the inputs used in or in relation to manufacture will be available subject to the condition of furnishing duty paying documents. It was held in Saphire Steels (P) Ltd. v. CCE, Meerut, 1996 (84) E.L.T. 331 (T) that mere fact that the applicant could not file a declaration on the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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