TaxTMI 
TaxTMI 
2009 (2) TMI 198
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....tor. They are only "pressed/stamped articles of iron or steel" specifically covered by Chapter Heading 73.26 of the First Schedule to the CETA. The learned Counsel for the appellants submitted the following points : It was stated that the appellants actually manufactured pressed components of iron and sent it to BPL. Reliance was placed on the decision in the case of Bharat Fritz Werner Ltd. v. CCE, 1998 (102) E.L.T. 732 (T) wherein it was held that if certain goods are specifically covered by any particular heading, such goods will be classified under that heading, even if they are parts and accessories suitable for use of a machine under a particular heading. In the above case, gears/shafts, etc. were held to be covered by Heading 84.83 being specifically covered and not as parts and accessories under Heading 84.66. It is settled law that "specific heading excludes general." The Supreme Court in Moorco (India) Ltd. v. CC, 1994 (74) E.L.T. 5 (S.C.), support the above contention of the appellant. 4. It is settled law that the goods are required to be classified in the state at which the same leaves the factory of the manufacturer and the subsequent use of the goods cannot be a de....
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....rade Notice which was binding on the respondent. Attention was also invited to the decision of the Tribunal in J.A. Enterprises v. CCE, 2008 (225) E.L.T. 154 (T) = 2008 (86) RLT 19 (T) wherein it was held that the Section line assembly, liquid line assembly, discharge line assembly, charging line, heading capillary and stainer assembly used in manufacture of air-conditioner was held to be parts of general use and classifiable under Chapter 74 and not as parts of air-conditioner. Attention was also invited to Section Note 2(b) to Chapter XVI of the First Schedule to the CETA, 1985. In terms of the above Section Note, the items in question can be classified as "parts of refrigerator" only if they are suitable for use solely or principally with refrigerator. There is no finding whether the items question satisfy the 'litmus test' as envisaged in the above Section Note. It was argued that if one goes by the version of the Revenue that the pressed articles of iron and steel in question were as per specific design given of the customer, still it has to be established that the items in question are "parts" of refrigerator. It is the submission of the appellant that the items in question w....
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....view of the Board's Circular and Vadodara Commissioner's Trade Notice. Under these circumstances, when there is a bona fide belief, the extended period under Section 11A(1) cannot be pressed into service. Several case-laws were relied on. In view of this, it was submitted that the whole demand is time-barred and even the six months demand during the relevant period prior to 12-5-2000 when Section 11A was amended is not saved by the show cause notice and therefore the whole demand is hit by time-bar. 8. The learned SDR took us to the findings of the learned Commissioner in the impugned order in para 20 and stated that the items manufactured by the appellants are specifically designed for refrigerator and they are being supplied to the BPL, a company. They have been used only in refrigerator. Moreover, our attention was invited to the statement given by Shri K.M.R Babu, Managing Director of M/s. R.B. Precision Components, which is treated as supporting evidence. It was stated that a statement of Shri K.M.R Babu is a question of fact and this is relevant in deciding the issue. As regards the Vadodara Trade Notice, our attention was invited to the Board's Circular which was issued lat....
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....t was the only paragraph, where the entire issue has been discussed. While coming to the conclusion that the appellant had manufactured only parts of refrigerator, the Commissioner has relied on the statement of Shri K.M.R. Babu, Managing Director of the company given during the investigation. However, there is no discussion on the Baroda Commissionerate Trade Notice submitted by the appellant. There is absolutely no discussion on that. Another reason given is that these items have been manufactured with the specific design and drawings of the customer, therefore they have to be treated as parts of refrigerator and the customer is also a manufacturer of refrigerator. It is also stated that the noticee has not furnished any documentary evidence to show that the items were also usable in general applications. The appellant had also relied on another decision of the Tribunal in the ILPEA case, which has been (cited supra). In that case, relying on the Vadodara Commissioner's Trade Notice and which is based on Board's Circular dated 25-9-1986, it was held that wire shelf trim, S. foil, butter shelf trim, front shelf square, long door, egg/butter retainer strip, shelf strip, not mention....
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....helves, middle shelves, tilting bottle shelves of M.S. grills are parts which are suitable for use solely and principally with refrigerator and as such are classifiable under Heading 84.18, but are being classified as articles of iron and steel under Chapter 73. 4. The matter has been, examined in the Board. From a harmonious reading of the Explanation in the HSN pertaining to Headings 7308.00 & 7326.00 read with Section Note (1) to Section - XVI, goods which are exclusively used as parts of machinery of Chapter 84 stand excluded from the purview Chapter 73. It was observed that the above items are solely and principally used in refrigerators. These are not merely grills to be classified under Chapter 73 "as articles of iron and steel", but are identifiable parts of refrigerators. 5. In view of the above and HSN Explanatory Notes to parts of Heading 84.18 at Page 1172, it is hereby clarified that Liner shelves, Middle shelves, Tilting bottle shelves etc. made of M.S. grills for use in the refrigerators are appropriately classifiable under sub-Heading 8418.90 of Central Excise Tariff Act, 1985 as parts of refrigerators. Field formations and trade may be advised accordingly. 6. Th....
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....rs, Bottle Collers, Deep Freezers, Combination Coolers, Refrigerated Display Cabinets, Ice Cream Making and Storage Machine, Closed Loop Water Chilling Machines, Cooling Coils, Ice Cube Makers and Ice Flaking Machines, Cooling Tower of FRP make, Air washers, Evaporator units. A close reading of this shows that all these items are for actually cooling the substances. The actual function of refrigeration is involved in those items. But, whereas Annexure B also gives the list of parts and accessories. But it empathically says that these are not covered by Chapter 84, for e.g: parts and accessories of Gas compressors, Thermostats and Pressure Switches. Definitely, they will be used in the refrigerators. They will be parts or accessories of refrigeration machines or refrigerators, but they have been classified under different chapters, because they themselves do not participate in the function of changing the temperature. In any case, these are the guidelines given. In fact, in Annexure B, we also find Grills, Diffusers, Dampers, Splitter, Damper, Fire Dampers made of Aluminium, Nozzles, ICE cans, dumps, Air curtains, Humidistats, Thermmometers, so many other items, which are used in re....