2002 (9) TMI 169

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.... Bills dated 31-8-99 wherein they sought to export the items mentioned as "Automotive Castings (Machined) - Piston Rings" under the DEPB Schedule Group Code No. 61, Sl. No. 67; that subsequently the Respondents amended the description of the goods as "Pig Iron Products Piston Rings"; that the Deputy Commissioner, under the Adjudication Order No. 3/99, dated 21-9-99, held that the Piston Rings can not be classified under DEPB Schedule either under Group Code No. 61 Sl. No. 67 as "Automotive Castings (Machined) or Group Code 61 Sl. No. 78 as Pig Iron Products" holding that Automotive Castings (Machined) are the commodities which are in the form of castings only even after machining and are not known in the market as any other part or item or ....

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....d that no specific rate exists for piston ring in DEPB Schedule; that a pig iron product is not a generic description for piston rings for which 'automotive parts' may only be the generic terms; that accordingly General Instruction No. 3 to Appendix 28A is not applicable. He finally submitted that the classification of a product cannot be decided merely by taking into account the composition of the product or the process of manufacture of the product. 3. On the other hand, Shri A.R. Madhav Rao, learned Advocate for the Respondents, submitted that the impugned product is manufactured from Pig iron, that this fact has been confirmed by the test conducted by the Chemical Examiner in respect of piston rings exported under Shipping Bill No. 7....

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....t misuse of the scheme by claiming different DEPB rate by classifying a specifically listed item under an entry having generic description. For example, in the absence of instructions adduced above, an exporter can classify crank shaft for two wheelers specifically failing at Sl. No. 290 entitled for DEPB @ 13%, in present schedule, under a generic entry of Alloy Steel/Stainless Steel forgings (machined) entitled for DEPB @ 22% vide Sl. No. 71 of present DEPB Schedule, and misuse the provisions. These instructions at the same time allow DEPB benefit to items, which are not specifically mentioned in the DEPB schedule, under appropriate generic description. The instruction nowhere stipulate that DEPB benefit is to be extended to only specific....