TaxTMI 
TaxTMI 
2026 (2) TMI 1075
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....@ 12%. The basis of their belief was that the goods manufactured were not used in/fitted with any electrical/mechanical devices and hence, not classifiable as parts of electric transformers. The Revenue issued a show cause notice dated 09.02.2018 (which was received by the appellant on 27.02.2018), proposing classification of "MS frame part" and "tanks" for transformer under CTH 73269099 and demanding differential duty of Rs. 3,69,311/- under Proviso to Section 11A along with interest under Section 11AA and penalty under Section 11AC read with Rule 25 of the Central Excise Rules, 2002. 1.1 The show cause notice was adjudicated by the Assistant Commissioner vide order dated 18.10.2018 wherein he held classification of the products under CTH 73269099, confirmed differential duty of Rs. 3,69,311/- under Section 11A(4) along with interest under Section 11AA of the Central Excise Act, 1994 and imposed penalty @ 50% of the duty amount under Section 11AC read with rule 25 of the Central Excise Rules, 2002. Aggrieved with this order, the appellant filed appeal before the Commissioner (Appeals) who vide impugned order dated 28.02.2019 upheld the order of the lower authority and rejected ....
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....AT New Delhi in the case of Marksons Radiator Vs. CCE, Nagpur- 2000 (124) ELT 473 and CESTAT Kolkata in the case of Steel Weld (India) Vs. Commissioner of C. Ex. Calcutta-II reported at 2003 (153) ELT 345 held that tanks for transformers are parts of transformer and as per the express wordings of the Notification 160/86, such tanks are not excluded from the benefit available thereon. * The show cause notice dated 09.02.2018 is issued for demanding duty for the period from March,2014 to December, 2014 whereas they have been regularly filing monthly ER-1 returns showing description of the product and its classification under CTH 85049010. They have neither mis-stated nor suppressed anything from the department and so, extended period of limitation in this case is not applicable. On same grounds, penalty under Section 11AC is not imposable on them. They rely on the decision of Hon'ble Supreme Court in the case of Jaiprakash Industries Ltd. Vs. CCE, Chandigarh reported at 2002 (146) ELT 481 (SC) wherein it is held that bonafide doubt as to non dutiability of goods was sufficient for the assessee to challenge demand on point of limitation. Similarly, Hon'ble Supreme Court in th....
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....and the impugned order may be upheld. 5. We have considered the rival submissions. The appellant's claim that revenue has not issued any show cause notice for the sequel period even though they continued to classify the said products under CTH 85049010, was got verified through learned AR who forwarded a letter dated 23.06.2025 of CGST Daman Commissionerate confirming that no demand show cause notice has been issued to the tax payer for the subsequent period. We have also seen copies of the purchase orders duly supported by the drawing and design of the concerned part which shows that the buyer has specifically ordered MS tanks/ MS frame part/gland plate part for a particular capacity of the electrical transformer. Copy of one such purchase order dated 03.11.2014 of M/s Sudhir placed by Sudhit Transformers Ltd, Masat is reproduced below:- 5.1 We have also perused the certificates issued by both the buyers namely M/s Sudhir Transformers Ltd and M/s Kryfs Power Component Ltd Unit-II certifying that "whatever MS tank and its accessories procured from M/s Gayatri Engineering, Plot No. 9, Government Industrial estate, Masat, Silvassa is exclusively used for our finished product(tr....
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....acts were in the knowledge of the department, invocation of extended period of limitation is not available to Revenue. 5.4 As discussed above, we hold that the appellant has correctly classified their finished goods under CTH 85049010 and therefore, we find no reason to interfere with classification of these goods. The appellant therefore, succeeds both on the merit as well as on limitation. Accordingly, we set aside the impugned order with consequential relief, if any as per law. 6. The appeal is allowed. (Pronounced in the open court on 16.02.2026) ============= Document 1 SUDHIR TRANSFORMERS LIMITED . MASAT (Formerly: Sudhir Intra Vidyut Ltd.), Plot No, 444/4, Masat industrial Area -Powering the Nation MasatSilvauna ON INDIA, PIN : Ph .: +91200-2641102 CIN; U05110KA1993PLC015063 Email : [email protected] sudhir of DNV ISO-No .: STLA47.04 ISSUE No. : 00 ISSUE Di. : 01/04/2014 . 26002001140 dt. 01.04.2008 Tin No PURCHASE ORDER DHN/CST/M/1141 DT 01.04.2008 STANDARD CST No : PO No: 4021500481 AAACI4456JXM002 ECC No : Draft Copy Silvassa-V, 1st Floor, Above HDFC Bank Range : Dated : Commisionerate:....