2004 (4) TMI 354

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....r the Appellant. Shri S.M. Tata, SDR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. - The appellants are manufacturers of I.C. Engine parts like piston and gudgeon pins. The appellants also procure and supply piston rings and circlips. These bought out items are at times supplied along with manufactured items, and at other times, separately. Under the order impugned herein it....

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....clips are not parts of pistons. They also pointed out that during the relevant period, about 44% of pistons were cleared without circlips and 88% pistons were cleared without piston rings. The appellant have also pointed out that there is no classification in excise as piston assembly inasmuch as, Tariff Item 84.09 deals with "parts suitable for use solely or principally with the engines of Headin....

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....f Professor Dr. Arun K. Lall, Head of Mechanical Engg. Deptt., Punjab Engineering College, Chandigarh. We may read his opinion : "This has reference to your office letter No.V(48) 15/128/CE/AA&R/95, dated 31-11-2001 regarding above mentioned subject. Rings and Circlips are essential parts of the Piston assembly. However, for each assembly, fixed number of rings and circlips are required. For de....

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....that each part has an Integral function in an assembly is no ground for holding that one item forms part of another item. Since excise duty is on manufacture, a manufacturer would be liable to pay duty only on the goods manufactured by it and not on all the goods supplied by it. For the sake of convenience, a buyer may request a manufacturer of one item (and that manufacturer may agree also) to pr....