TMI Blog1992 (10) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 7307.10 as castings of iron and eligible to the benefit of Notification 208/83. The classification of Brake Blocks manufactured according to specifications and designs supplied by the Ministry of Railways and supplied to the Indian Railways is the issue for decision in E/1517/91-according to the appellants the classification should be under Heading 73.07 while the Department has classified them under Heading 86.07 as parts of railways or tramway locomotives or rolling stock . 3. We have heard Shri V. Lakshmi Kumaran, the learned Counsel for the appellants in all the appeals and Shri S.K. Sharma, the Ld. JDR for the Revenue and carefully considered their submissions. 4. Anti-creep bearing plates are placed between the rail and wooden sleepers and fixed to the wooden sleepers with four spikes/screws. The rails are placed between the two jaws of the bearing plates. The main purpose is to reduce the wear and tear of the sleepers and rails and to prevent what is known as Longitudinal Creep which occurs in the forward direction when a heavy rolling stock moves on the rails. In some cases, rails are fixed to the sleepers only with the help of spikes and bearing plates are not u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is that Anti-creep bearing plates can be considered as sole plates. The Ld. Counsel refers to the explanatory notes at page 1013 wherein sub-para 5 reads as follows : Sole plates (base plates, sleeper plates) are used in fixing flat-bottomed rails to sleepers. They protect the sleepers and are fixed to them by cramps, bolts, coach screws, spikes or, in the case of steel, by welding . If the bearing plate is considered as a sleeper plate then the same would merit classification under Heading 7302.10 as sleepers and in terms of Trade Notice 218/87 dated 19-8-1987 issued by the Calcutta-II Collectorate would be exempt from duty under Notification No. 208/83-C.E., dated 1-8-1983. We do not agree with this contention as the tariff itself recognises sole plates as a separate item of railway track construction material under Heading 73.02. Therefore, we do not accept Ld. Counsel s argument that anti-creep bearing plates are sole plates. 7. We therefore, hold that anti-creep bearing plates fall for classification under Heading 7302.90 which covers 73.02 - Railway or tramway track construction material of iron or steel, the following: rails, switch blades, crossing frogs, point ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eyond the period of six months while in other two appeals, the entire demand is beyond the period of six months from the date of issue of show cause notice. Shri V. Lakshmikumaran submits that the extended period of limitation is not available to the department as the appellants had been filing declarations in terms of Notification No. 111/78 (exemption from licensing) for the relevant period namely 1986-87 and 1987-88 declaring the manufacture of bearing plates and brake blocks, as iron castings falling under Heading 7307.10. He submits that prior to the introduction of the 1985 tariff, the bearing plates and brake blocks were classified under T.L 25 as iron castings and fully exempt from duty under Notification 208/83 dated 1-8-1983. Therefore, the appellants were under the bona fide belief that even after the change in tariff, the items in question were classifiable as iron castings under Heading 73.07. Therefore, the failure of the appellants to take out the Central Excise Licence would not amount to suppression in the absence of anything positive on the part of the appellants. The Ld. DR on the other hand contends that the failure to take the Central Excise Licence ipso facto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. As per separate note attached. 6. Value/quantity of the goods estimated to be cleared in the current financial year 200 lakhs 5375 M/T (clearances are all of exempted goods). 7. Heading No. or sub-heading No. of the Schedule to the Central Excise Tariff Act, 1985 under which the goods are classifiable. As per separate note attached. 8. (a) Reference to the Notification issued under Rule 8 of the Central Excise Rules, 1944 (under which the goods are exempted from the whole of the duty of excise leviable thereon). Exemption Notification No. 208/83 dated 1-8-1983 amended vide Notification No. 79/86 dated 10-2-1986 (b) Basis of exemption of the said notification Covered by the above notification (c) Whether the goods are being exported. No 9. Process of manufacture. Pig Iron (Duty paid) and CI Scrap is first melted in Cupola Furnace. Molten Metal is then poured into prepared sand Moulds to obtain Castings SHEET ATTACHED TO THE FORM OF DECLARATION UNDER CENTRAL EXCISE TARIFF ACT, 1985 4. Full description of goods being manufactured Heading, sub-heading of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them in view of the long standing practice of classification of castings under T.I. 25 and availability of the benefit of Notification No. 208/83 even subsequent to 1-3-1986 when castings fall under Heading 73.07. This bona fide belief is further fortified by the fact that HSN Explanatory Notes were available only in Sept. 85 and complete alignment of the Central Excise Tariff with the HSN took place only in 1986. In the light of the above discussion, we hold that the extended period of limitation will not be attracted in these cases. Consequently, the demands in Appeal Nos. E/1516/91 and Appeal No. E/1517/91 are entirely barred by limitation. In Appeal No. E/2788/88 and Appeal No. E/2846/91, the demand is confirmed for a period of six months prior to the issue of show-cause notice. 13. In the result, we hold as follows : (a) Anti-creep bearing plates fall for Classification under Heading 7302.90. (b) Brake blocks fall for Classification under Heading 8607.00. The demands in Appeal No. E/1516/91 and Appeal No. E/1517/91 are set aside on the ground of limitation. The demand in Appeal No. E/2788/88 is confirmed for the period 5th Feb. 87 to 31-3-1987 and the demand in Appea ..... 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