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TMI Blog2003 (9) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... dingly they have made a prayer to restore the order of the original adjudicating authority for which he has confirmed demand of duty of Rs. 14,07,107.80 as demanded in the show cause notice along with imposition of personal penalty of identical amount. In addition he has also confiscated the said goods seized at the time of visit of the officers with option of the appellant to redeem the same on payment of redemption fine of Rs. 1,00,000/- and to clear the same on payment of duty. 2. Shri T.K. Kar, ld. SDR, appearing for the Revenue submits that the said ceramic plugs are nothing but improved version of the battery caps, which are admittedly parts of the storage batteries. The ceramic plugs replace the conventional battery plugs in a more sophisticated manner than the caps thus reducing the maintenance of the batteries. This fact by itself will not take the ceramic plugs from the category of being parts of the storage batteries. He draws our attention to the original order passed by the Additional Commissioner of Central Excise wherein he has discussed all the aspects relatable to classification of the product and has dealt in detail the submissions made by the respondents. He su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade of ceramic material, the same would get classified under Chapter 69. 5. The Revenue s contention is that the storage batteries fall under 85.07 and as per Note 2(b) of Section XVI the parts, being suitable for use solely or principally with a kind of machine or with a number of machines of the same heading are to be classified with the machines of that kind. Inasmuch as the ceramic plugs are used exclusively in the storage batteries, they have to be treated as a part of the storage battery, thus earning their classification under Heading 85.07. 6. The respondents counter the above arguments on the ground that ceramic plug is not used by the battery manufacturer as a part of the same. A storage battery is complete without the use of the such ceramics plugs at the time of its clearance from the factory. Ceramic plug is an optional item, which is used subsequently by the user of the battery by replacing the caps on the battery holes. It is their contention that as it is a matter of consumers discretion to use or not to use the ceramic plug, the same have to be treated as an accessory and have to be classified in terms of the provisions of Rule 3(b) of Rules for Interpretation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents have also referred to the Larger Bench decision of the Tribunal in the case of Eureka Forbes Ltd. v. CCE, 2000 (120) E.L.T. 533. They have reproduced the following para of the said decision in their written synopsis : - The above-mentioned reports go to show that Aquaguard without pre-filter not only filters the water but also purifies it. It is a complete unit in itself as far as filtering and purification are concerned. To have its efficacy increased and to give a longer life time to the activated carbon column fixed on the left side of the equipment, the assessee canvasses for a pre-filter to be added to it. What is the purpose served by the addition of pre-filter? It is not to make any change in the filtering or purification of the water that is passed through Aquaguard but it is to minimize the strain on the activated carbon column. Pre-filter is suggested for enhancing the utility of the activated carbon column. They take the characteristics of accessories. The meaning and scope of the word accessory was considered by their Lordships of the Supreme Court in Annapurna Carbon Industries Co. v. State of Andhra Pradesh 37 STC 378. According to their Lordships accessorie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rforming the function of boosting the TV signal to get the proper picture and quality of reception has to be treated as an accessory inasmuch as TV set is complete without boosters and the boosters are not considered as a part of TV cannot be applied to the facts and circumstances of the case. Taking a case where picture tube is so manufactured with the advanced technology that the same also performs the function of the boosters, can it be said that the picture tube has become an accessory instead of a part. The answer to the above question is definitely in the negative. As such inasmuch as the ceramic plugs are a replacement for the conventional plastic battery cap, the same have to take the place of battery cap for the purposes of classification. 11. Further examining the respondents claim of classification under 6901.90, we find that the said Chapter 69 applies only to ceramic products which have been fired after shaping. The Additional Commissioner has observed that the said chapter does not include items which are mixture or combination of any other substance like plastic or rubber and inasmuch as the items under dispute are a combination of ceramic parts as also of plastic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o establish and thus discharge the onus placed upon it that the ceramic plugs are properly classifiable under Heading 85.07. In view of the foregoing we find merits in the Revenue s case that the ceramics plugs are to be classified under Heading 8507.00 as parts of the storage batteries and not under Heading 6901.90. 14. The respondents have also argued that the demand relates to the period 1992-93 to 1996-97 whereas the show cause notice was issued on 4-9-97 thus the demand for the period prior to six months from the date of issuance of the show cause notice would be barred by limitation. In support of their above submissions they have submitted that the judgment of the Hon ble Gujarat High Court as reported in 1992 (59) E.L.T. 247 holding that plastic battery caps are not be considered as parts of the batteries but were to be classified under Chapter 39 as articles of plastic and the subsequent issuing of the circulars and Section 37B order by the Ministry let them to form a bona fide belief and impression that the ceramic plugs being manufactured by them are to be classified on the basis of the constituent material i.e. ceramic. In any case the respondents had written a lett ..... X X X X Extracts X X X X X X X X Extracts X X X X
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