2005 (12) TMI 23

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s other than Sewing head and were clearing the same on payment of duty @ 16% under heading 8457.19. Proceedings were initiated against them for classifying the said part under heading 8452.90, which attracted Nil rate of duty and as a consequent denying the benefit of Modvat credit to their customers. Such proceedings culminate into an order passed by the original adjudicating authority holding that the said parts mere properly classifiable under heading 8452.90 and the respondents have wrongly paid duty on the same, which were not admissible for further Cenvat credit to their customers. 3. In appeal assessee contended that by virtue of provisions of Note 2(b) of Section XVI, parts which are suitable for use solely and principally de signe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... be classifiable under the same SH as sewing machine and SH 8452.90 would cover other parts other than those solely and principally designed, for particular category of sewing machine. The appellant had also produced drawing of weighing and bagging system, which shows the various parts of sewing machine. Duty was therefore paid correctly and there is no ground to treat such duty as reversal under rule 57CC(i) or to demand additional amount on the said reversal since the parts were dutiable and were duty paid, the Modvat credit was availed correctly. Under the facts and circumstances, discussed above, no further amount is demandable and since no further amount is demandable, there is no cause/or imposition of penalty." 5. The Revenue in the....