1998 (10) TMI 114

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....riod from 11-4-1989 to 13-5-1989 and a penalty of Rs. 2,000/- imposed on appellant. The show cause notice is dated 18-10-1989. 2. Briefly, Assistant Collector of Central Excise approved Classification List No. 146/88-89 w.e.f. 1-7-1989 under 8439.00 and Part-II price list on 7-6-1988. Goods were cleared Paper Pulp making machinery in SKD condition on 5 GPs and RT 12s covering these were finally assessed accepting duty paid. After investigations by Preventive Section, show cause notice (supra) seeks : (a) reclassification of Drive & Transmission section of the paper under 8483.00; and (b) inclusion of Rs. 3,80,000/- (Technical know-how charges) in assessable value of de-inking plant supplied in late 1988 (Duty involve....

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....erval Engineering Consultants was never incorporated and no evidence is led to show that the amount collected by appellants was passed on to them with interest. Since appellants did not disclose such additional collection, they suppressed it with intention to evade. 5. We have carefully considered the arguments on both sides and records of the case and our findings on the seven issues raised by the appellant is as follows : 1. A show cause notice is issued alleging contravention of law to put the affected parties to notice. It may contain alleged infractions of one or more laws. There is nothing in the Central Excise Act or Rules which prohibits a single show cause notice to be issued on questions of classification for one s....

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....ps Revenue from re-examining the same by putting the party to notice. 4. It is also not correct to say that in the impugned order duty has been demanded without reclassification. The show cause notice seeks reclassification from 8439.00 to 8483.00 and goes on to demand the differential duty arising out of this. The impugned order first discuss at para 10 the classification of the products and then only confirms the differential duty demand in para 12. We do not find any infirmity or inconsistency in this approach. 5. Considering the classification of the product under CETA, 1985, we find that admittedly, these consist mainly of Gear and Gear boxes, Shafts, Pulleys & Wheels. We find that Heading 84.83 contains a specific desc....

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....`Pulleys and Wheels' are also covered under the expression "fly wheels and pulleys, including pulley blocks". Therefore, it is clear that each of these 5 items is specifically described under the Heading 84.83. 7. The note 2(a) to Section XVI reads as follows : "2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of Heading No. 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classified according to the following rules : (a) Parts which are goods included in any of the headings of Chapter 84 or Chapter 85 (other than Heading Nos. 84.09, 84.31, 84.48, 84.66, 84.73, 84.85, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to be cl....