2001 (5) TMI 296

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....re manufacturing agricultural tractors. Those tractors were having hydraulic lift body for lifting the harrow above the ground level which are to be used for ploughing the field. Tractors were classified under Chapter Heading 8701 of the Central Excise Tariff. Rate of duty as per that Heading was 13%. For paying duty on tractors value of the tractor inclusive of the hydraulic equipment was taken into consideration and duty paid at 13%. While so, department issued show cause notice dated 26-5-1998 claiming differential duty of Rs. 33,05,216.40 on the ground that the hydraulic lift bodies which form part of the tractors are classifiable as part of the tractors falling under Chapter Heading 8708 of the Schedule to the Central Excise Tariff Act....

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....of the show cause notice should be referred to. It reads :- "Whereas it appears that the said hydraulic lift bodies are classifiable as part of tractors under Chapter 87.08 of the Schedule to the Central Excise Tariff Act, 1985 and the Central Excise duty is payable under that chapter heading separately at the rate of 15% ad valorem." This averment in the show cause notice gives no room to doubt that hydraulic lift bodies are part of tractors. Explanation mentioned in the notification relates to "other specialised material handling equipment mounted, fitted or fixed on tractors". The show cause notice has nowhere stated that the hydraulic lift bodies attached to the tractors cleared by the respondent fall within the category of specia....

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....produced in the case by the Revenue. Even otherwise the Revenue will not be permitted to produce such evidence in this case which originated in the show cause notice wherein these equipments were described as parts of the tractor. Further, the only reason for approaching this Tribunal to vary the orders passed by the authorities below is contained in the solitary ground mentioned in the memorandum. For a proper understanding of that ground we read the same : "The order passed by the Commissioner, Central Excise (Appeals), New Delhi is incorrect in as much as the Notification No. 245/82-C.E., dated 1-11-1982 which relates to tractors clearly stipulates that the value of any weight lifting or other specialized material handling equipments ....