2004 (4) TMI 590

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....agricultural knapsack sprayer engine which is used as a part/component in mechanical appliances for spraying pesticides in fields and farms. The product is being classified under Heading No. 84.24 in Maharashtra (manufacture-High Power Engineering Company Private Limited, Satara) and in Tamil Nadu (manufacturer-Greaves Limited, Chennai) whereas in Gujarat it is classified under Heading No. 84.07 in the petitioners' case by the Assistant Commissioner of Central Excise at Valsad under the Commissionerate of Central Excise, Valsad. 3. The petitioners' contention is that in view of the aforesaid classification in Maharashtra and Tamil Nadu, the petitioners' competitors are not paying any Excise duty whereas the petitioner-Company....

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.... are being used for making sprayers or agricultural purposes. It is, therefore, submitted that so far as the petitioner-Company is concerned, it is only manufacturing engines falling under the Heading No. 84.07. 5. This Court had earlier by Order dated 24.12.2003 in Special Civil Application No. 17946 of 2003 relegated the petitioner-Company to the Assistant Commissioner with a specific direction that the Assistant Commissioner shall compare the machines being manufactured by three different manufacturers in three different States and decide whether discriminatory treatment is given to the petitioner-Company and respondent No. 3, the Assistant Commissioner was also expected to call for the information from the concerned officers of diffe....

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.... manufacturers in Gujarat are receiving discriminatory treatment. As regards M/s. HMP Engineers Limited, Surat, the learned counsel for the petitioners states that the said Company came to be closed down for the same reason in May 2002 as they also could not compete with the above named manufacturers in Maharashtra and Tamil Nadu who are not required to pay excise duty on the same product. The petitioner-Company also has to close down its manufacturing operations in December 2003 because it was not in a position to compete with the manufacturers from Maharashtra and Tamil Nadu who are required to pay excise duty at nil rate whereas the petitioner-Company has to pay excise duty at 16% ad-valorem and the petitioner-Company could not absorb th....

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....r projecting, dispersing or spraying liquids or powders and similar appliances used in agriculture or horticulture are liable to pay duty at Nil rate and, therefore, engines which become parts of which mechanical appliances for spraying liquids such as pesticides fall under sub-heading No. 8424.91. The petitioners have also relied on the certificate dated 25.11.2003 issued by Baheti Brothers at Akola in Maharashtra and the certificate dated 25.11.2003 issued by Padsons Ind. Pvt. Ltd. also at Akola in Maharashtra stating that the said parties buy 35CC petrol engines as detailed below from various manufacturers: (1) "Ralli" L-25 Knapsack agricultural sprayer engine manufactured by Ralli Engines Ltd. (2) "HP-35" Agricultural ....