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TMI Blog2019 (2) TMI 1611X X X X Extracts X X X X X X X X Extracts X X X X ..... ircrafts and various other machineries and therefore they cannot be considered as parts and components of automobiles. Accordingly, the demand of differential duty falling under section 4A is not sustainable. The demand of differential duty on this ground is not sustainable - penalty u/r 25 of CER also needs to be set aside. Appeal allowed - decided in favor of appellant. - Application No. E/MISC/30015/2019 In Appeal No. E/2959/2011 - A/30414/2019 - Dated:- 21-2-2019 - Mr. M.V. RAVINDRAN, MEMBER (JUDICIAL) And Mr. P.V. SUBBA RAO, MEMBER (TECHNICAL) Shri P. Bhaskar Reddy, Consultant for the appellant Shri C. Mallikharjun Reddy, Superintendent/AR for the Respondent. ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e duty payable. However, in respect of some commodities which are notified, the valuation shall be done as per Section 4A of the Act instead of Section 4. This section requires the duty to be paid based on the printed retail sales price of the commodity subject to some abatement. Section 4A applies to such commodities as have been notified under this section and all other goods get valued as per Section 4. 5. The appellant herein is manufacturing automobile inner tubes. It is the case of the Department that these tubes should be considered as parts of the automobiles as per notification No. 11/2006-CE(NT), dated 29.05.2006 as amended which makes the goods liable to duty under Section 4A. The relevant portion of the said noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The description of the goods against Sl.No. 108 of the said Notification No. 49/2008 CE(NT) dated 24.12.2008 was amended vide Notification No. 9/2010 CE (NT), dated 27.02.2010 as detailed below: Sl. No. Chapter or heading or sub heading of the first schedule Description of goods Abatement as a percentage of retail sale price 108 Any heading Parts, Components and assemblies of vehicles (including chassis fitted with engines) falling under Chapter 87 excluding vehicles falling under heading 8712, 8713, 8715 8716. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s can be considered as parts of automobiles and charged to duty as per Section 4A, read with notification No. 11/2006- CE (NT), dated 29.05.2006 as amended. This issue is no longer res integra and it was decided by the Principal Bench of the Tribunal in the case of J.K. Tyre and Industries Limited [2017 (358) E.L.T. 1044 (Tri.-Del.)] in which it was held that the tyres and tubes are not only used for automobiles but also used for animal drawn vehicles, aircrafts and various other machineries and therefore they cannot be considered as parts and components of automobiles. Accordingly, the demand of differential duty falling under section 4A is not sustainable. Following the ratio of this decision, this Bench by Final Order No. A/31410-31411/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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