2011 (4) TMI 391

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....ht to be initiated against the appellants by issuing show cause notice dated 4th July 2003 were dropped.   2. The appellants are engaged in manufacture of Bright Wire of Steel and Thresher Shaft classifiable under Chapter 72 and 84 respectively of the schedule to the Central Excise Tariff Act, 1985.   3. During the scrutiny of ER-1 returns for the period from April 2002 to March 2003 it was observed by the department that the appellants had been clearing Thresher Shaft without payment of duty by classifying the product under sub-heading No. 8433.00 by reversing an amount @ 8% of the sale value in terms of Rule 6 (b) of the Cenvat Credit Rules, 2002. According to the department the Thresher Shaft though formed part of an agricult....

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....8483.90 in view of Chapter Note 2 (a) which reads thus :   Parts which are goods included in any of the headings of Chapter 84 or Chapter 85 (other than headings No. 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 classified in their respective headings.   5. It is the case of the appellants that the product in question being not a transmission shaft, it is classifiable under chapter sub-heading 8433.00 more particularly in view of Chapter Note 2 (b) and that the Chapter Note 2 (a) has no application to the matter in hand.   6. The chapter sub-heading No. 8433.00 relates to the entry harvesting or threshing machinery, including straw or fodder balers; grass or hay mowe....