2017 (8) TMI 1211

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rein referred to as assessees and department for the sake of convenience. 2. The assessees are manufacturers of jewellery watches, watch case and parts thereof falling under Chapter 91 and ornaments of gold and silver which are exempted goods falling under Chapter 71 of CETA 1985. On scrutiny of records, it was found that the assessees have manufactured 16 nos. of Miniature toy cars (Electro plated with Gold over FRP mould) and have cleared the same without payment of excise duty. The department was of the view that such miniature toy cars would fall under Chapter heading 9503.00 and as the assessees had cleared the items without payment of excise duty to their CFAs at New Delhi, Kolkata, Mumbai and Hosur under stock transfer, department....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The classification proposed by the department under Chapter 95 is not correct for the reason that the miniature car may look like a car but it is not a toy car; the value of the miniature car itself will not justify the same being called as a toy. A toy cannot include an item, which is worth Rs. 1.50 lakhs. It was argued by the learned counsel that the department has sought to classify it under Chapter 95 stating that gold in the miniature car is only a minor constituent; Since 200 gms. of gold goes into the process and weight of sample FRP mould which is of 334.78 gms, the gold content in such miniature car cannot be said to be minor constituent; that the assessees have rightly classified the items under Chapter Heading 71.01 and therefore....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... No.71.01, the expression 'articles of jewellery (other than imitation jewellery)' means: (a) Any small objects of personal adornment (gem-set or not) (for examples, rings, bracelets, necklace, brooches, ear-rings, watch-chains, fobs, pendants, tie-pins, cuff-links, dress-studs, religious or other medals and insignia); and (b) Articles of personal use of a kind normally carried in the pocket, in the handbag or on the person (cigarette cases, powder boxes, chair purses, cachou boxes). Heading No. Sub-heading No. Description of goods Rate of duty (1) (2) (3) (4) 71.01 7101.10 - Diamonds, cut or polished or both Nil 71.01 7101.20 - Piezo-electric quartz - Precious metals, namely....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....onstituent. For the same reason, the said items would not fall under Chapter Heading 95.03. The assessees have also drawn our attention to Notification No.6/2002 wherein Sl.No.171 explains 'articles of gold' as under : 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) ... ... ... ... ... ... 171 71 (I) Articles of - (a) gold; (b) silver; (c) platinum; (d) palladium; (e) rhodium;(f) iridium; (g) osmium; or (h) ruthenium; (II) Ornaments and the like articles made of gold or silver or platinum or any one or more of them, whether or not set - (a) with st....