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2019 (6) TMI 860 - AT - Central ExciseClassification of goods - method of Valuation - section 4 or 4A of CEA? - manufacture of Cables - also manufacture of Auto (Annexure A) / Battery (Annexure B) / Ignition Cables, which are specifically used in Automobiles - classification of the goods - Sr. No.97 under Notification No.11/2006-CE/ (NT) dated 29.5.2006 - time Limitation. Appellants contention is that the items manufactured by them fall under Chapter Heading 8544 and the parts and accessories of motor vehicles are classifiable under Chapter Heading 8714; department cannot change the assessment without changing the classification - Revenue on the other hand argued that the cables manufactured by the Appellants are tailor made to be used in the automobiles. HELD THAT:- The impugned goods are tailor made to be used in automobiles and the Appellants themselves advertised and packed the products describing the same to be used in automobiles. It is pertinent to note that the retail customers understand the impugned goods to be parts of automobiles. The appellants are manufacturing “Auto Cables, Battery Cables and Ignition cables”, which have a specific use only in the ‘Automobile Industry’ and are cleared in retail packages affixed with MRP. They do not increase the efficiency of automobiles and therefore, the whole discussion on accessories is incorrectly placed. It is prudent that the goods are to be understood/ evaluated/classified as per the perception and use of the customers. Therefore, the department’s contention is correct that the auto cables and battery/ignition cables manufactured and cleared by the Appellants are to be treated as automobile parts If the impugned goods are automobile parts for the purposes of Packaged Commodity Rules, they need not be necessarily classified as same under Central Excise Tariff Act, 1944. We find that auto/battery/ignition cables manufactured by the Appellants are essential parts of automobiles and are covered as “parts, components and assemblies of automobiles”, under the notification No.11/2006-CE (NT) dated 29.05.2006, 14/2008 CE(NT) dated 01.03.2008 and 14/2008 CE(NT) dated 24.12.2008. Time Limitation - HELD THAT:- It is not open for the department to sit over the RT-12 returns over a period of time and invoke extended period on the completion of investigation. Department was free to raise queries on the returns filed / during the visit of audit parties to obtain necessary information from the Appellants. This having not been done extended period cannot be invoked - extended period cannot be invoked. The demand requires to be restricted to the normal period. In order to conclude the duty payable for the normal period, the issue needs to go back to the original authority. The appeals are partially allowed by way of remand for the purpose of calculation of duty for the normal period.
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