TaxTMI 
TaxTMI 
2007 (5) TMI 55
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.... Central Excise Tariff Act demanding differential central excise duty of Rs. 30.42 lakhs for the period 1st December 1992 to June 30, 1997 by invoking the longer period of limitation under the proviso to Sec. 11A(1) of the said 1944 Act. 2. The assessee-appellant was manufacturing excisable goods classifiable under Chapter 84 of Central Excise Tariff Act, 1985. They were manufacturing Side Covers, Rear Covers, Fan Brackets, Oil Supply Ring and Balance Shaft Covers (aluminium castings). They were classifying these castings under CSH 8432.00 by declaring the said items as part of Power Tillers. The classification list was approved from time to time. However on 2-1-1998 a show cause notice was issued by the Department stating that the said al....
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.... 82 and 84. - In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts goods of the description specified in column (3) of the Table hereto annexed and falling under Chapter or heading Nos. of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as are specified in the corresponding entry in column (2) of the said Table, from the whole of the duty of excise leviable thereon which is specified in the said Schedule. THE TABLE S. No. Chapter or Heading No. Description of goods (1) (2) (3) 01. 82 Hand Tools, the following : Spades, shovels, mattocks, picks, hoes, forks and rakes, axes, bill hooks and similar hewing tools, Secateurs of any....
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..... 01,04 and 08 to 12 above. [Notification No. 111/88-CE., dated 1-3-1988 as amended by Not No.141/88-CE., dated 18-4-1988] 6. A bare reading of the aforesaid Notification indicates that it seeks to exempt "parts of goods" specified at serial Nos. 08 to 12 from payment of duty. In the present case we are required to read serial No. 13 with serial Nos. 08-12 of the said Notification. Serial No. 13 states that parts of goods which fall under Chapter 84 at serial Nos. 08 to 12 shall stand exempt from payment of duty. According to the Department description of the goods at serial No. 09 categorically refers to Chapter Heading 84.32 which in the present case is not at all applicable, particularly, when the castings came under Chapter Heading 84....
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....ed the classified list filed by them under CH 84.32. The assessee had sold the above castings to State PSU, namely, Kamco who also told them to classify the said goods under CH 84.32. 8. In the circumstances we are of the view that the Department was not entitled to invoke the extended period of limitation. There is one more reason why we say so. In the present case IC engines were supplied to Kamco. At the relevant time Kamco had recommended to the assessee that they should take advantage and classify the aluminium castings in Chapter Heading 84.32. Even Kamco was of the view that the castings came under Chapter Heading 84.32. Kamco was the customer of the assessee. It is a State Public Undertaking. The Department had at one stage given a....