2018 (6) TMI 865

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....to various manufacturers of automobiles such as Maruti Suzuki India Limited and M/s Eicher Motors. Some of the bearings are also sold to distributors and stockists for further sale in the replacement market. The dispute in the present case pertains to the bearings sold to distributors and stockists. In terms of Notification No. 11/2006-CE (NT) dated 01.06.2006 as amended, MRP valuation under Section 4A of the Central Excise Act is applicable to various goods specified therein including "parts, components and assemblies of automobiles" falling under any chapter of the Central Excise Tariff. The Department was of the view that during the period of dispute, the various types of bearings manufactured and cleared for use in the automobile indust....

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....mponents and assemblies of automobiles are covered by said the entry, irrespective of their clarification in the tariff. The circular further clarified this to include items such as batteries, brake assembly, tyres, tubes and flaps, IC engines, ball bearing etc. Subsequent to the clarification the appellant started discharging the duty in terms of Section 4A. (ii) Ld. Advocate submitted that the department has issued show cause notice only after the clarification was issued by the Board and hence the Department is not justified in raising the demand by alleging suppression and mis-statement on the part of the appellant. (iii) He also submitted that the Hon'ble Supreme Court has categorically held in many cases that a beneficial circul....

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....scope of the term 'parts' as used in the aforementioned entry. Chapter 87 of the Central Excise Tariff covers parts of different vehicles. Further, Section Note 2 of the Section XVII also defines the scope of 'parts' of goods falling in said section. Doubts have arisen as to whether 'parts' classified in Chapter 87 shall only be covered under the said entry or all parts irrespective of their classification should be covered. 3.2 The issue has been examined. The said entry provides that 'parts, components and assemblies' falling in any heading in the Tariff are covered. Therefore, it is logical that all 'parts, components and assemblies,' irrespective of their classification shall be covered. It is also important to note that there is no ....