2015 (9) TMI 622

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....of iron and steel into castings. These are classifiable under Heading 7325. There is another group company in the name of Neco Schubert and Salzer Ltd. (hereinafter referred to as NSSL). This company had the machinery to do machining on the rough castings and also had facility to fix fitments to such machined castings. It is to be added that while placing the order, USCO Spa has decided to send certain fitments for the cylinder heads which were also received by JNL and thereafter sent to NSSL for fitting on the machine parts. 2. The present dispute relates to the period December 2002 to December 2004. During the said period, waste and scrap of iron and steel were being converted into rough castings in the factory of JNL. Thereafter th....

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....to JNL. The appellants' case, on the other hand, is that there is only one set of goods that were produced or manufactured and the said goods have been exported out of India under bond and, therefore, no duty is payable on such goods. The appellants' claim is also that the discrepancy in the description and classification of the goods has been a mistake on their part and continued throughout the period of two years as the invoices and ARE-1 etc. were generally made based upon the description used in the earlier documentation. 4. The learned Advocate for the appellants' main contention was that the department has not produced any evidence to indicate that the two sets of goods have been produced and even the invoices which are the main....

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....by JNL were cancelled by the department and under the circumstances, there is no evidence whatsoever which indicates that the two sets of goods were manufactured, one which was exported and the other one cleared in the domestic market. There is no evidence whatsoever to indicate that any goods have been cleared in the domestic market. The learned Advocate also stated that in fact they cannot clear in the domestic market for the reasons that these are proprietary items and cannot be sold and have no market as such in India. 5. The learned special counsel for the Revenue, on the other hand, argued that during the scrutiny of the records, it was found that JNL had entered into a contract with NSSL for purchase of finished cylinder heads ....

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....USCO Spa, Italy and these invoices indicate the prices in Dollar. We find that the specification and number of different cylinder heads given in both the invoices are exactly the same. Even the number of cylinder head of each type is exactly the same. We have also seen the corresponding bill of lading and the packing list. There also, the number is the same. In the ARE-1 also, the total number of cylinder head tallies. Only thing is in the ARE-1: detailed specification of different cylinder heads is not indicated. In any case, from the reverse of the ARE-1 it is seen that the goods were examined by the Range Inspector and Superintendent and they have also seen the invoices raised by JNL to USCO Spa, Italy. The invoices are also attested and....