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TMI Blog2017 (8) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... e gold content in the miniature car with regard to plastic content, it can be said that gold content is minor constituent. For the same reason, the said items would not fall under Chapter Heading 95.03 - It is very evident from the notification as well as the chapter heading that subject goods are classifiable under Chapter 71 and the N/N. 6/2002-CE dt. 1.3.2002 is applicable to such goods - demand unsustainable - appeal allowed - decided in favor of assessee. - E/972/2005 & E/978/2005 (By Dept.) - 41027-41028/2017 - Dated:- 19-6-2017 - Ms. Sulekha Beevi C.S. Member (Judicial) And Shri V. Padmanabhan, Member (Technical) Shri M. Kannan, Advocate, For the Assessee Shri K.P Muralidharan, AC (AR), For the Department ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has filed the appeal No.E/972/2005. The department has filed the appeal No.E/978/2005 against the reduced penalty. 3. On behalf of the assessee, ld. counsel Shri M. Kannan submitted that the subject items, namely, miniature cars would be rightly classifiable as 'articles of gold' under Chapter 71 of CETA'85 and these are exempted from payment of duty as per Sl.No.171 of the Table to the Notification No.6/2002 dt. 1.3.2002 by virtue of definition of 'article of gold' as appearing in the Explanation under Sl.No.171 of the said notification; that these cars have been sold to M/s. Hyundai Motors India Ltd. to offer the same as incentive to those who by Hyundai cars. The subject goods have been sold for ₹ 1,50,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apter Note (2), it is stated that this chapter includes goods when goods when precious metal or metal clad with precious metal constitute only minor constituents; that gold in the miniature car when compared to the plastic is less and therefore precious metal being minor constituent the articles are rightly classifiable under Chapter heading 95.03; that therefore assessees are not eligible for the exemption in the notification. 5. We have heard the submissions of both sides. 6. The first point that poses for consideration is classification of the miniature cars. Assessees have classified the same under Chapter 71 and claimed the exemption benefit under Notification No.6/2002 dt. 1.3.2002. Department is of the view that these items are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 71.01 7101.39 -- Other 16% 71.01 7101.40 - Articles of jewellery (other than imitation jewellery) and parts thereof 16% 71.01 7101.50 - Imitation jewellery 16% 71.01 7101.60 - Strips, wires, sheets, plates and foils of silver Nil 71.01 7101.70 - Articles of silver 16% 71.01 7101.80 - Dust and powder of natural or synthetic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;articles of gold' as under : S.No Chapter or heading No. or sub-heading No. Description of goods Rate under the First Schedule Rate under the Second Schedule Condition No. (1) (2) (3) (4) (5) (6) 171 71 (I) Articles of - (a) gold; (b) silver; (c) platinum; (d) palladium; (e) rhodium;(f) iridium; (g) osmium; or (h) ruthenium; ..... X X X X Extracts X X X X X X X X Extracts X X X X
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