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TMI Blog2018 (10) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... on namely 11/2006 etc. as amended covers ball bearings for MRP based assessment as being a part of automobiles - We are of the view that the bearings as such, are not part or components of the automobile vehicles though the ball bearings to form a part of other parts of automobile vehicles It has been intention of the legislature ab initio not to consider that ball bearings as parts of automobile vehicles - also, the department has not brought on record any evidence to prove that as appellant assessee has sold any of his consignments of ball bearings to any manufacturer of automobile or any service station of automobiles. The department has stretched the provisions of law unnecessarily to include small quantities of ball bearings cleared on retail sale under the provisions of section 4A without substantiating such claim with some concrete evidences - thus, ball bearings are not included under relevant notifications issued under section 4A of the Central Excise Act, 1944 and therefore, same cannot be considered for assessment on the basis of MRP value. Appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Central Excise duty is that under Notification No. 11/2006 CE (NT) dated 29.5.2006 have entry which reads that 'Parts, Components and Assembly of Automobiles' need to be assessed taking MRP value as the basic price for determination of assessable value after providing the necessary abatement. It has been the contention of the Revenue that since ball bearings are also used by various Automobile manufacturers as part of automobile and, therefore the clearances made by the appellant to the retail sellers who may be further selling the same to various automobile service stations etc. and therefore, MRP value should have been taken as the basis for determining the assessable value of ball bearings cleared to the retail sellers. 2. Learned advocate has vehemently contended that the ball bearings has multiple use and that no clearances of ball-bearings have been effected by the appellant directly or indirectly to any automobile manufacturers or service stations and therefore it is imaginary to allege that the ball bearings being sold by them in retail market are being used as 'parts, components and automobile' and therefore, the MRP value should have been taken for determining the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise Act, 1944 has been made applicable vide Notification No. 09/2010 only to Parts, components and assemblies of vehicles (including chassis fitted with engines) falling under Chapter 87 excluding vehicles falling under headings 8712, 8713, 8715 and 8716. The appellant submit that since, there product is classifiable under Chapter Heading 84.82; therefore, there is no doubt that the demand for the period deserves to be set aside. 6. Bearings imported are subjected to duty on transaction value. That to the best of the information available to the appellant, the parties importing Ball bearings are paying CVD (Countervailing Duty as equivalent to Duty of Excise) on the transaction value of the goods imported and not on the MRP less abated value. The appellant submits that there should be no discrimination by the department in assessment of imported goods vis-a-vis indigenous goods. 7. It has also been contended by the appellant that the demand raised by the Department is barred by limitation as there has been no suppression or mis-declaration or collusion on their part with an intent to evade payment of Central Excise duty as department has always been aware about the practice of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to which it is required, under the provisions of the Standards of Weights and Measures Act, 1976 (60 of 1976) or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the retail sale price of such goods, to which the provisions of sub-section (2) shall apply. (2) Where the goods specified under sub-section (1) are excisable goods and are chargeable to duty of excise with reference to value, then, notwithstanding anything contained in section 4, such value shall be deemed to be retail sale price declared on such goods less such amount of abatement, if any, from such retail sale price as the Central Government may allow by notification in the Official Gazette. a. Notification No. 11/2006-CE(NT) dated 29.5.06 w.e.f. 01.06.2006 by amendment in Notification No. 02/2006-CE(NT) dated 01.03.2006 which read as under:- S.No. Chapter, heading, sub-heading or tariff item of the First Schedule Description of goods Abatement as a percentage of retail sale price (1) (2) (3) (4) 97. Any heading Parts, components and assemblies of automobiles 33.5% b. Superseded by 14/2008-CE(NT) dated 01.03.2008 which read as under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es though the ball bearings to form a part of other parts of automobile vehicles. It is also relevant that the Central Excise Tariff under section 17 which covers the classification of vehicles, aircrafts, vessels and other associated transport equipment specifically excludes under Section Note 2 the bearings falling under Chapter 84.81 or 84.82 from the expression of 'parts and accessories of vehicles'. Thus, from the careful study of the section note it becomes clear that it has been intention of the legislature ab initio not to consider that ball bearings as parts of automobile vehicles. We also find great force in the argument of learned advocate that the department has not brought on record any evidence to prove that as appellant assessee has sold any of his consignments of ball bearings to any manufacturer of automobile or any service station of automobiles. 12. In view of our observations, we find that the department has stretched the provisions of law unnecessarily to include small quantities of ball bearings cleared on retail sale under the provisions of section 4A without substantiating such claim with some concrete evidences. In view of the above, we find that ball bear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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