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2019 (2) TMI 1611 - AT - Central ExciseMethod of valuation - section 4 or section 4A of CEA - Rubber Tubes - It is the case of the Department that these tubes should be considered as parts of the automobiles as per notification No. 11/2006-CE(NT), dated 29.05.2006 as amended which makes the goods liable to duty under Section 4A - HELD THAT:- This issue is no longer res integra and it was decided by the Principal Bench of the Tribunal in the case of J.K. TYRE & INDUSTRIES LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, INDORE [2018 (2) TMI 611 - CESTAT NEW DELHI] in which it was held that the tyres and tubes are not only used for automobiles but also used for animal drawn vehicles, aircrafts and various other machineries and therefore they cannot be considered as parts and components of automobiles. Accordingly, the demand of differential duty falling under section 4A is not sustainable. The demand of differential duty on this ground is not sustainable - penalty u/r 25 of CER also needs to be set aside. Appeal allowed - decided in favor of appellant.
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