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2017 (9) TMI 945 - AT - Central ExciseDuty liability - appellants were regularly procuring various items from domestic as well as the foreign source and bring the same to the PDC for further process and distribution on sale - Revenue entertained a view that the appellants are not discharging applicable central excise duty on various items which are subjected to different process in the PDC - Held that: - the appellants are engaged in repacking and relabeling of indigenous items with FORD MRP labels and in respect of imported items only relabeling of FORD MRP labeling are done at the PDC of the appellant - the Chapter Notes as they existed during the relevant period carried both the conditions of relabeling or bulk to retail pack. The appellant would not be put to duty liability based on these Chapter Notes r/w section 2(f)(ii). In respect of these items, upto the period 1.3.2003. We note that lubricating oils, adhesive kits, coolants etc. will be covered under Schedule III which figures the respective entries finding place in the said Schedule which is applicable with effect from 1.3.2003 - the appellant is liable to duty of their activities in respect of three products from that date. Classification of goods - emblem radiator grill, cap assembly oil filter, audio players with or without speakers, bulbs, switches, fuses and relays - Revenue classified these items under Chapter 39 and 85 - deemed manufacture - Held that: - audio players with or without speakers, radio assemblies are sound reproducing equipments which are specifically to be under the classification of Tariff Entry 8527 as per the clarificatory note of HSN applicable at the relevant time. As such, following the clarificatory note of HSN, we find the product is rightly classifiable under Chapter 85 and is subjected to levy of duty in terms of the above Schedule r/w section 2(f)(iii) for the period after 1.3.2003 - Considering that these are items are designed for manufacture for use in automobile industry and same was recorded by the original authority also in more than one place of the impugned order, we find no justification to call these items as generic articles of plastic when they are admittedly principally and solely usable in the automobiles. As such, the duty liability in terms of the above Schedule r/w section 2(f)(iii) will not raise prior to 1.6.2006. Regarding duty liability of the appellant on bulbs, switches, fuses and relays, we note that the original authority classified the same under Chapter 8536/8539. These entries are for electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits, for a voltage not exceeding 1000 volts and electric filament or discharge lamps including sealed beam lamp units and ultra-violet or infrared lamps, arc lamps - In the present case, admittedly, the products in dispute are specifically designed and usable only with automobile except when they are excluded to be classified under Chapter 87 as components, parts and accessories, they have to be classified under Chapter 87. Heading 812 is not discussed for a decision in the impugned order. Extended period of limitation - penalty - Held that: - there can be no positive sustainable allegation of willful mis-statement, fraud, collusion etc. to invoke the extended period or to impose penalty - demand upheld for normal period - penalty set aside. Appeal allowed - decided partly in favor of appellant.
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