TaxTMI 
TaxTMI 
2018 (10) TMI 959
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....ff Act and consequently, demanded duty along with interest and seized goods were held liable for confiscation and redemption fine and penalty were also imposed on the appellant. 2. The facts of the case are that the Revenue received the information that the appellants are manufacture of screw hooks and clearing the same without payment of duty, therefore, the factory of the appellants were searched and the goods lying in stock were seized. Later on, on the basis of investigation and various statements recorded during the course of investigation, the show cause notice was issued to the appellants to classify the said goods under Chapter heading 7318 of the Central Excise Tariff Act, 1985 and to demand duty along with interest and to impos....
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....e. 4. On the other hand, the ld. AR supported the impugned order. 5. Heard the parties and considered the submissions. 6. We find that the facts of the both the cases are identical. As appellants as well as M/s PNA Agro Industries are manufacturing harrow hooks. These harrow hooks are called as trolley hooks and trailor hooks and they are used for tractor or trolley. 7. We further take note of the fact that these hooks are also part of thresher and trolley harrow hooks and the facts of both the case are identical. We further find that in the case of PNA Agro Industries (Supra), the adjudicating authority has examined the classification issue and observed as under: "6.4 As harrow hooks cleared by M/s PNA, were forged on a forg....
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....7315, 7317, or 7318 and similar articles of other base metal; (b) springs and leaves for springs, of base metal, other than clock or watch springs (heading 9114); and (c) articles of headings8301, 8302, 8308, 8310 and frames and mirrors, of base metal, of heading 8306. In Chapters 73 to 76 and 78 to 82 (but not in heading 7315) reference to parts of goods do not include reference to parts of general use as defined above. Subject to the preceding paragraph and to Note 1 to Chapter 83 the articles of Chapter 82 or 83 are excluded from Chapters 72 to 76 and 78 to 81." 6.7.1 Thus, in terms of Section Note 1(f) of Section XV, goods falling under Chapter 84 are not covered under Chapter 73. 6.8 Section Note 1(g) and Section Note....
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....t, in heading 8487 or 8548. 6.8.1 Thus, in terms of Section Note 1(g) of Section XVI, parts of general use, as defined in Note 2 to Section XV, of base metals (Section XV) are not covered under Chapter 84. In other words, parts covered under Chapter 84 (other than parts of general use), are to be classified under Chapter 84, as per Section Note 2 of Section XVI. 6.9 Since harrow is an agriculture implement classified under Chapter Heading 8432 of the Schedule, its parts (not being parts of general use) are classified under Chapter Sub-Heading 8432 90, in terms of Section Note 1(f) of Section XV (Base Metals and Articles of Base Metals), Section Note 1(g) and Section Note 2, of Section XVI (Machinery, Mechanical Appliances and Electric....
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....n be imposed on both the appellant, therefore the penalty imposed on the appellant is also set aside. 10. We further take note of the fact that entire demand has been raised against the appellant by invoking extended period of limitation. As Revenue itself is having two different views, in that circumstance, the extended period of limitation is also not invokable. 11. In view of the above, we set aside the impugned order and allow the appeals with consequential relief, if any. (Dictated and pronounced in the open court) ============= Document 1 Other Tariff Itern 7326 7326 11 00 7326 19 7326 19 10 7326 19 90 7326 20 Description of goods Other articles of iron or steel Forged or stamped, but not fu....
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....r tractor ploughs Harrows, scarifies, cultivators, weeders and hoes 8432 10 8432 10 10 8432 10 20 8432 10 90 -Other 8432 21 00 8432 29 8432 29 10 8432 29 90 Other 8432 30 00 -Disc harrows Other Rotary hoes Seeders, planters and transplanters Manure spreaders and fertiliser distributors " Nil 0 NO " Nil " Nil Nil Nil Nil u Nit Nil Nil Nil ZZZZZ 8432 40 00 5432 80 Other machinery 8432 80 101 8432 80 201 8432 80 90 8432 90 8432 90 10 8432 90 90 Rotary tiller Other Parts Lawn or sports ground rollers Parts of agricultural machinery falling within headings 8432 10, [u] 8432 21, 8432 29, 8432 30 and 84....