2017 (6) TMI 903

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....or the Respondent ORDER Per Bench The appeals are directed against OIA No.49 & 50/2005 dt. 31.3.2005. The facts of the case are that appellants are engaged in the manufacture of chassis for motor vehicles falling under sub-heading No.8606.29 and 8706.49 among other things. They procure tyres/tubes/flaps under concessional rate of duty in terms of SI.No.81 of notification 6/2002-CE dated 1.3.200....

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....them under Rule 25 of the Central Excise Rules, 2002 besides interest under section 11AB of the Central Excise Act, 1944. After due process of law the lower authority confirmed the demand to the extent of Rs. 7,36,444/- with interest. Penalty of Rs. 75,000/- was also imposed under Rule 25 of the Central Excise Rules, 2002. When the issue was carried to Commissioner (Appeals), he upheld the order o....

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....modities viz. tyres, tubes, flaps have been procured by the appellant from the tyre manufactures without payment of duty in terms of the Notification No.6/2002-CE dt. 1.3.2002 (Sl.No.81 and Condition No.5). The appellant had undertaken to use such goods in the manufacture of motor vehicles. The Motor Vehicle Act specifically requires motor vehicles to be cleared with seven tyres. Even though the m....

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....low for ready reference : S. No Chapter or heading No. or sub-heading No.  Description of goods Rate under the First Schedule Rate under the Second Schedule Condition No. (1) (2) (3) (4) (5) (6) ... ... ... ... ... ... 81 4011.90, 4012.11,4012.19, 4012.90 or 4013.90 Tyres, flaps and tubes used in the manufacture of machinery falling under heading Nos. 84.26, 84.27,....