TaxTMI 
TaxTMI 
1997 (9) TMI 195
X X X X Extracts X X X X
X X X X Extracts X X X X
....embly" etc., specifically designed for scooters of M/s. LML Ltd., submitted classification list for the same effective from 1-4-1986 under sub-heading 8714.00 as "parts of scooters" which was approved by the Department and duty was paid and RT 12 returns were also finalised through out the financial year 1986-87. The assessees filed classification list No. 153/86-87 effective from 1-4-1987 for approval of the items under the same sub-heading and this list was approved only provisionally. A show cause notice dated 25-9-1987 was issued proposing re-classification under sub-heading 8544.00 as "cables" and proposing recovery of differential duty under Section 11A of the Central Excise Act, 1944. The Assistant Collector approved the classificati....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., "8544.00 Cable (including co-axial cable) and other insulated electric conductors, WHETHER OR NOT FITTED WITH connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors." 30% adv Heading 8714.00 Parts and accessories of vehicles of Heading Nos. 87.11 to 87.13" 4. The assessees received PVC wires/insulated wires and insulated electric conductors classified under 8544.00 of the Schedule to the Central Excise Tariff Act, 1985 in their factory on payment of duty, these wires were cut to different sizes according to specifications and then fitted with connectors such as terminal lugs. The other inputs ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....5, parts of machines which are goods included in any of the Headings Chapter 84 or 85 ..... are in all cases to be classified in their respective Headings." Note 1 to Section XVI, Note 1 to Chapter 84 and Note 1 to Chapter 85 exclude certain items from the coverage of Section XVI, Chapter 84 and Chapter 85. But we find that the items in dispute are not excluded by those Notes. Therefore, Note 2(a) to Section XVI is attracted and the goods are rightly classifiable under sub-heading 8544.00. Moreover, we find that the HSN Explanatory Notes to Heading 85.44 at page 1404 clearly states that wires, cables, etc. remain classified in this Heading if cut to length or fitted with connectors (e.g., plugs, sockets, lugs, jacks, sleeves or terminals) a....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... viz. : 1. 1986 (24) E.L.T. 226 (Kar.) - Ideal Jawa India P. Ltd. v. Assistant Collector of Customs, Mysore; 2. 1986 (25) E.L.T. 473 (S.C.) - Atul Glass Industries v. Collector of Central Excise; 3. 1987 (31) E.L.T. 369 (Bom.) - PMP Auto Industries v. Union of India; 4. 1988 (35) E.L.T. 3 (S.C.) - Asian Paints v. CCE; 5. 1988 (36) E.L.T. 283 (Bom.) - Sealol Hindustan Ltd. v. UOI; 6. 1988 (19) ECR 52 - Precision Fasteners Ltd. v. CCE, Bombay; 7. 1995 (77) E.L.T. 278 (S.C.) - Union of India v. JMA Industries. are distinguishable. The cases at Sl. Nos. 1 to 4 and 6 to 7 were decided in the context of the Schedule to the erstwhile Central Excise Tariff as it stood before the introductio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....anufacture is involved as no new product with a different name, character and use emerges as a result of the fitting with connectors is also not well founded - from the list of inputs set out in the order of the Assistant Collector, we find that wires and cables are fitted with connectors and put in a casing and that a distinct, different commercial commodity emerges as a result of the processes carried out by the assessees and the new commercial commodity has a different name, character and use - the inputs are wires and cables and the final product is cable harness/wire harness, etc.; the character changes from mere wires and cables into cable/wire harnesses and the use is also different. The submission of the learned Counsel that no manu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....der sub-heading 8544.00, finalised the classification list No. 153/86-87 which was earlier provisionally approved and then, in the same order confirmed the demand of differential duty. It is not as if the demand has preceded the adjustment of duty after final assessment [the date of adjustment of duty after final assessment thereof is the relevant date for computing time limit for issue of demand notice under Section 11A(1) as defined in 11A(3)(ii)(b)]. The judgment of the Hon'ble Bombay High Court in the case of Union of India v. Godrej and Boyce Manufacturing Co. reported in 1989 (43) E.L.T. 225 (Bom.) relied upon by the learned Counsel for the assessees is not applicable - in that case it was held that since Section 11A vests the Central....