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TMI Blog2001 (12) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... s kinds of tyres including tyres described by them as 'Grip Master (GM) and Grip Master Non-Directional (GMND)' of various sizes viz., 8.25-20, 9.00-20, 11.00-20, 12.00-20, 12.00-24, 14.00-25/85 and 18.00-25. Prior to 1-3-84, all the above mentioned sizes of GM and GMND tyres were classified under T.I. 16-I(i). These tyres attracted basic excise duty at 60% Adv. from 1-3-84, off-the-road tyres (OTR) were removed from T.I. 16-I(i) and brought under new sub-item 16-IIIs of the erstwhile Central Excise Tariff. The rate of duty remained at 60% for the said OTR tyres, while the rate of duty for other truck tyres was made specific. From 1-3-84, M/s. CEAT classified GM and GMND tyres of smaller sizes viz. 8.25-20, 9.00-20, 11.00-20, 12.00-20 and 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.25-20, 9.00-20, 11.00-20, 12.00-20 and 12.00-24 as truck tyres under T.I. 16-I(b)(i) from 1-4-84 to 27-2-86 and thereafter under Chapter Heading No. 4011.60 with an intent to evade the payment of appropriate duty and that they had made wilful mis-statement, suppressed the facts thereby evading duty amounting to Rs. 3,24,08,431.85 during the period from 1-4-84 to 28-2-89. The show cause notice also proposed to impose penalty on S/Shri S. Samuel and M.R.P. Desai under the provisions of Rule 209A of Central Excise Rules, 1944, and also to impose penalty on the assessee and to confiscate the land, plant and machinery, etc. under Rule 173Q ibid. 5. After following the principles of natural justice, the Collector by his impugned order held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r design, manufacturing process, specification, etc. would show that they were classifiable as other tyres of the kind used in vehicles or equipments designed for use off-the-road. He relies upon the pamphlet and other product literature brought out by the respondents describing the features of the tyres, in question, from which it would be clear that the said tyres are different from ordinary tyres. The contention of the Revenue is that as regards GMND tyre, the literature specifically claimed that it was an excellent tyre for use in mining operation and at construction site. Their submission is that the adjudicating authority, in the impugned order, had failed to take note of the contents of the manual published by the Indian Tyre Technic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise Tariff after 1985. 9. The contention of the respondents is that correct test for deciding classification of the tyres, in question, would see the types of vehicles on which these tyres are fitted. Their submission is that the Tariff Heading T.I. 16(iii) under the old tariff reads as "tyres for vehicles or equipment designed for use off-the-road", which clearly shows that for the purpose of coming within the said classification only requirement was that tyres should be designed for the use in off-the-road vehicle. Their submission is that this argument is also good for the period after 1985. The classification did not envisage the prohibition that such tyres should not be used for operation on regular roads. It is the type ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pneumatic tyres, of 40.11 rubber. 4011.50 - of a kind used on saloon cars. 4011.60 - of a kind used on other motor vehicles (for example, buses, lorries and station wagons). 4011.70 - of a kind used on tractors including agricultural tractors. 4011.80 - of a kind used on trailers. Other tyres : 4011.91 - of a kind used on vehicles or equipments designed for use off the road. 4011.99 - Other". 11. The reading of the above tariff entries shows that prior to enactment of the Central Excise Tariff Act, they were covered by two entries, namely, T.I. 16 (i) and T.I. 16 (iii) and after enactmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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