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TMI Blog2004 (9) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1985. They clear the said P.D. Pumps at a NIL rate of duty. They also manufacture Electric Motors and Parts, which are fitted at the base of the said P.D. Pumps. These electric motors fall under Chapter sub-heading 8501.00 of the CET and the Appellants clear the same for captive consumption without payment of duty vide Notification Nos. 6/2000 3/2001. Chapter sub-heading 8501.00 reads as follows : 8501.00 Electric motors and generators (excluding generating sets) They also manufacture certain entities termed as Thrust Support Plate, Thrust Support Segment, Support Segment Carrier and Ball Retainer Ring (Lower and Upper) and use them captively, classifying them separately, under Chapter sub heading No. 8503.00 of the CET viz. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice dated 28-3-2002 on the ground that the Appellants had misdeclared goods as parts of electric motors and classified same under Chapter sub-heading No. 8503.00 with an intention to evade the payment of Excise duty of Rs. 50,04,734/-. The said show cause notice was confirmed by the impugned Order-in-Original No. 4/2003, relying heavily on the CBEC Circular No. 678/69/2002-CX.CBE, dated 4-12-2002. Hence this appeal. 6. After hearing both sides and considering the material it is found - (a) The Circular No. 678/69/2002-CX.CBE, dated 4-12-2002 begins by admitting, that doubts were raised regarding the classification and dutiability of thrust bearing assembly used in submersible power driven pumps. It further recorded that the Board ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd force in these submission and hold that since the entire demand was for a period prior to the issue of the said Circular the same cannot be recovered. (c) The notice nor the order gives reasons for classification as bearings. It is found, the entities for the electric motor, manufactured by the Appellants, do may reduce friction, but the same do not form an identifiable bearing. Mere reduction of friction cannot ipso facto amount to that object being a bearing as understood by the people dealing with the products. Lubricants for example reduce friction, but by no stretch of imagination can a lubricant be called a bearing . The bearing excluded from the benefit of the notification have to encompass only such items as are unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since qua non to bring in the intermediate goods to be bearings excluded from the benefit of the said notifications. It is well settled law that such capability of being removed and marketed and evidence thereto is a must to bring eligibility Manufacture and Existence of bearings excluded by the notification is therefore not established. (e) Denial of exemption and Demands made are therefore not upheld hence there is no case to call for import of penalty on the assessee or its employees. 7. With reference to the written submissions submitted by the ld. DR submits that there is some confusion about the matter taken up by one Kirloskar Brothers Ltd. Before the settlement Commission and the Appellants herein. The Appellants have n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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