2004 (4) TMI 343

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the Appellant. Shri L. Narasimha Murthy, JDR, for the Respondent. [Order per : S.L. Peeran, Member (J) (Oral)]. -  The appellants are manufactures of Power Tillers. They claimed exemption of duty on Power Tillers from 1966. The Department had issued a show cause notice dated 28-5-2003 invoking larger period under Section 11A of the Central Excise Act for the period from 1-6-1998 to 3....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....arate penalty of Rs. 2,90,00,000/- under Section 38A besides penalty of Rs. 30 lakhs on Managing Director and Rs. 20 lakhs on Sr. Manager of the Company. The Ld. Counsel argued on merits as well as time bar. He submits that chapter note 2 of chapter 87 does not apply to the facts of the case as chapter note 2 of chapter 87 does not describe how a tractor functions. There is clear distinction betwe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nalty as appellants have strong merits and time bar. 2. Ld. DR drew our attention to chapter note 2 of chapter 87 and submits that chapter note 2 of chapter 87 is satisfied since power tiller is specially made as a tractor since power tiller has all the features of a tractor. Therefore classification adopted under chapter 8701 is correct. He also supports the findings of the Commissioner f....