TMI Blog2006 (12) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... 89.22 (in appeal E/2628/99) and Rs. 13,56,001.39 (in appeal E/2630/99) in respect of bicycle tube valves manufactured by the respondent which were held to be classifiable under Chapter heading 84.81 by the lower adjudicating authority but was held to be classifiable under Chapter heading 87.14 by the Commissioner (Appeals), thereby extending the benefit of Notification 62/86 dated 10-02-1986 as parts and accessories of cycles falling under Chapter 87 which were earlier denied by the lower adjudicating authority as parts falling under Chapter 84 were not eligible for exemption under Notification 62/86. The respondents have also filed their cross-objections in all the four cases. 2. The learned DR submits that the Commissioner (Appeals) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ference was also invited to circular issued by the Board vide F. No. 154/9/90-C.E., dated 15-1-1993 under which the Board has rejected the representation from Bicycle Manufacturers Association for grant of exemption to bicycle valves and directed the field formation to finalise the assessment accordingly. Further in the year 1996-97 the government has included bicycle tube valve under heading 84.81 only. Reference was also invited to Notification 124/90 under which exemption has been extended to bicycle valves and these valves had been shown as classifiable under Chapter heading 84.81 thereby establishing that the correct classification is under Chapter 84.81. 4. The learned advocate for the respondent in cross-objection submits that bicy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssifiable under Chapter heading 84.81 then the price indicated by them should be treated as cum-duty price and certain deduction in respect of export clearances should be allowed and Modvat credit should also be allowed. 6. We have considered the submissions. We find that in this case the valves are specifically mentioned by name under Chapter heading 84.81. The valves can be of any kind and includes inner tube valves also as per HSN Explanatory notes. Even according to subsequent amendment in 1996 a specific entry has been made for bicycle valves under Chapter heading 84.81 only. This shows that all tube valves are covered under Chapter heading 84.81. Since this is not mentioned as an article under any of the headings of Section XVII the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the quantum of demands have been disputed on the ground that the price at which the goods were sold should be considered as cum-duly price, certain deductions have to be allowed in respect of exports which have to be taken into account while calculating the duty and that the benefit of Modvat credit in respect of the inputs used in the manufacture of valves should be allowed. We find that it is a settled law that once duty has not been recovered from the customer the price at which the goods is sold is to be considered as cum-duty price and accordingly duty has to be re-worked out. Similarly, Modvat credit cannot be denied once the goods are held to be classifiable under different heading and chargeable to duty which were earlier cleared u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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