TaxTMI 
TaxTMI 
2026 (1) TMI 776
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....4 by the officers of the Central Excise Department and on verification of their records and further recording of the statements, it was noticed that the appellant had not paid applicable duty on manufactured LLDPE pipe and sprinklers wrongly claiming benefit of exemption under Sl.No.70 of the Notification No.3/2005-CE dated 24.02.2005. On conclusion of the investigation, show-cause notice was issued on 14.10.2015 invoking extended period of limitation demanding Central Excise duty of Rs.13,22,645/- for the clearances made during the period 01.04.2011 to 31.12.2014 with interest and penalty. Similar show-cause notice was later issued on 08.08.2018 (appeal No.E/20549/2022) proposing recovery of duty of Rs.8,66,683/- for the period from July 2016 to June 2017 with interest and penalty. Both the show-cause notices were adjudicated separately confirming the demand with interest and penalty. Aggrieved by the said orders, they filed appeals before the learned Commissioner(Appeals) who in turn rejected their appeals. Hence the present appeals. 3.1. At the outset, the learned advocate for the appellant has submitted that they manufactured and cleared CPVC pipes and fittings on which they....
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...., Nasik [Final Order No.A/86097-86105/2025 dated 17.07.2025] and Flow Tech Power Vs. CCE, Coimbatore [2001(130) ELT 541 (Tri. Chennai)]. 3.3. He has further submitted that recently a Circular No.155/11/2021-GST dated 17.06.2021 issued by the CBIC in connection with clarification regarding GST rate on laterals / parts of sprinklers of DIS made it clear that sprinklers of DIS parts are classifiable under Chapter heading 8424 as per Note 2(b) to Section XVI to the HSN. Further, he has submitted that demand invoking extended period in appeal No. E/20180/2018 cannot be sustained as the issue relates to interpretation of the relevant tariff entry and all the facts relevant to the present case were within the knowledge of the Department and neither misdeclared nor suppressed; hence, confirmation of demand is bad in law. 4. Learned AR for the Revenue has reiterated the findings of the learned Commissioner(Appeals) 5. Heard both sides and perused the records. 6. The limited issue involved in the present appeal for consideration is whether the LLDPE pipes cleared in running length and sprinklers for DIS are eligible to the benefit of Notification No.3/2005-CE dated 24.02.2005 att....
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....classified in the respective headings. (b) Other parts if suitable for use solely or principally with a particular kind of machine, or with number of machines of the same heading (including a machine of heading No. 84.79 or heading No. 85.43) are to be classified with machines of that kind or in Heading Nos. 84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29 or 85.38 as appropriate. However, parts which are equally suitable for use principally with the goods of heading Nos. 85.17 and 85.25 to 85.28 are to be classified in heading No. 85.17. (c) All other parts to be classified in heading Nos. 84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29 or 85.38 as appropriate or falling that, in heading Nos. 84.85 or 85.48. The department contends that under note 1(g) of Section XVI parts had been used as defined in note to Section XVI of base metal (Section XV) and similar goods of plastic of chapter 39 are excluded from Section XVI which has chapter 84 within it. The appellants contention has been that the goods are not parts of general use but they are specifically manufactured for DIS and cleared as such for the purpose of distribution of water to the l....
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....ceived from the parties. The invoices are supportive of their pleas. They have also produced their marketing literature which shows that these pipes are designed and the system is also designed for lay out for supply of water to the agriculture. On perusal of the evidence it is clear that the pipes are laid out as per the drawings and various strips are fixed to this pipes at the spot laid out. Therefore, the contention of the department that the parts are of general use as defined under Note 2 of Section XV & Note 1(g) of Section XV is not acceptable as the said Note 2 of Section XV does not refer to these parts under Chapter 84.24. 7. It is also seen that in terms of note 2(b) of Section XVI parts if suitable for use solely or principally with a particular kind of machines are required to be classified along with the main item. These parts have become part of DIS and manufactured as per ISI specifications for use only as DIS is required to be considered for classification along with the entire system by applying Note 2(b) of Section XVI. Further even Note 4 of Section XVI reads as follows : "Where a machine (including a combination of machines) consists of indiv....
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....tracts the paint particles sprayed by compressed air to that object and prevents dispersion. (3) Industrial robots specially designed for projecting, dispersing or spraying liquids or powders. PARTS Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), the heading includes parts for the appliances and machines of this heading. Parts falling in this heading thus include, inter alia, reservoirs for sprayers, spray nozzles lances and turbulent sprayer heads not of a kind described in heading 84.81." On a careful reading of the above note, it is seen that an underground network (distribution lines and branchlines which carry the water from the control station to the irrigation zone) and also surface network (dripper lines incorporating the drippers) constitute irrigation system and the above note also emphasises that such system are classifiable under heading 84.24 as functional units within the meaning of Note 4 to Section XVI. The parts thereof are also brought under this Section and the parts as are referred to above include reservoirs for sprayers, spray nozzles, lances and turbulent ....