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TMI Blog2004 (12) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... tainless Steel lifters being cleared by the appellants by classifying the same under Heading 7323.90 and under exemption Notification No. 5/99-C.E., were in fact not entitled to the exemption inasmuch as the same were not being used as a part of the household articles. Statements of Shri Anil Modi, Executive of the appellant s company was recorded wherein he deposed that the said handles were predominately used for plastic buckets/plastic containers. It was also revealed that M/s. Mold Tech was their main customer. The said company was using the handles in the manufacture of containers/drums used in paint/oil manufacturing industries. Scrutiny of the records, however revealed that major part of the goods was being used for industrial purposes and a very minor parts was being used for domestic household articles of plastics. 4. During the course of further investigation, statements of various persons were recorded. Another statement of Shri Anil Modi was recorded on 29-7-2002 confirming the contents of the earlier statement recorded on 25-7-2002. Statements of Shri Anil Modi was also recorded on 26-7-2002 clarifying that M.S. handles being manufactured by them were Nickel Plated/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y price. Shri Pardeshi, ld. JDR appearing on behalf of the Revenue, reiterated the reasoning of the Commissioner for holding the goods as properly classifiable under Heading 7326.90. 8. After the conclusion of the hearing, the appellants have filed written submissions raising an altogether new ground to the effect that the activity being carried out by them does not amount to manufacture. Though, the said ground was neither raised before the Commissioner nor at the time of hearing before the Tribunal, we propose to deal with the same by considering it be a legal issue. It has been contended before us that the activity of making M.S. Handles does not amount to manufacture in terms of provisions of Section 2(f) of the Central Excise Act, 1944. Detailing the process of manufacture in their written submissions the appellants has stated as under :- that they procure M.S. Wire from various Wire Drawing Units or Dealers of different gauges in Coil Form this wire is straightened and cut on wire straightening and cutting machine into different sizes as per the size of the handle to be manufactured for different sizes of buckets e.g. 3 Ltrs., 10 Ltrs., 25 Ltrs., etc. to get the better ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7326.11 - 7326.19 - 7326.21 - 7326.29 - 7326.90 Other As is clear from the bare reading of the above entries, household articles of iron and steel and their parts made-up of iron and steel are classifiable under Heading 7323. To fall under said Heading primarily two conditions are required to be satisfied i.e. the item should be a part of the household articles and the household articles as also the parts should be made of iron or steel. In the instant case, though the handles are made up of iron and steel the same are not being used in the bucket made of iron or steel, they are being used as parts of either the plastic bucket or as handles of big drums or/and steel containers used as packing material for industrial purpose. The above position has emerged from the statements of the appellants partner as also by their executive and from the statement of various customers and scrutiny of the purchase orders. The Commissioner has discussed the entire evidence available on the records reflecting upon the fact that the handles were either being fitted to plastic buckets or the drums and con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation with the Central Excise officers declaring the classification of the goods under Heading 7323.90 and claiming the benefit of the notification. We have seen the said declaration, so filed by the appellants for the years 1998-99 and 1999-2000. In the said declaration they have declared the products as M.S. handles for buckets/baskets, etc., and S.S. lifters. Below the said declaration, it has been declared as (both are parts of household goods). In the declaration for the year 2000-2001, it has been declared as M.S. Buckets under nickel plated/zinc plated/powder coated/PVC steels, etc. (T.I. 73.23). Handles are part of buckets/tubs etc. and these items are household articles . 12. From the above declaration it is clear that the appellants nowhere declared that the handles being manufactured by them are being cleared to the container manufacturers for industrial purposes. They have misdeclared the fact by stating that the M.S. handles are used for buckets without even specifying whether it is plastic bucket or iron and steel bucket. The fact of the use of such handles for the industrial purpose has come to the Revenue s notice only as a result of investigations conducted by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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