9911796707
TMI Blog2012 (3) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed against the first applicant. On the second applicant there is a penalty of Rs. three crores imposed. 2. The first applicant was manufacturing chassis for ambulances and sending it to the second applicant for building body of the ambulances on such chassis. The period of dispute is from 1-4-2005 to 13-11-2009 and the amount of duty demanded is Rs. 7,54,40,318/-, along with equal amount of penalty. Out of this an amount of Rs. 14,68,701/- has already been deposited by the first applicant. 3. The first dispute is with reference to valuation of the ambulances with complete body whether it should be valued on cost construction basis or on the basis of the sale price of the ambulances to independent buyers, by the second ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the above headings were introduced a specific entry has been inserted under Heading 87.03 with Tariff Item No. 8703 33 92 covering "specialised transport vehicle such as ambulances, prison vans and the like". The argument of Revenue is that since there is a specific eight digit entry for ambulances under heading 87.03 ambulances were classifiable under 87.03 for the whole period that is even for the period prior to 2005, though there is no such specific entry prior to 2005. The duty demand is confirmed on such basis. 8. The contention of the applicants is that motor vehicles principally designed for the transport of more than six persons excluding the driver, will fall under Heading 87.02 only. The Heading 87.03 covered only motor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation, we are prima facie in agreement with the applicants that the Tariff Item in Heading 87.03 can be read only as a split of the goods covered by the goods covered by the description in the heading and the Tariff Item cannot expand the scope of the heading. So we are of the view that there is no case for asking for any pre-deposit of duty demand arising from this issue. 12. In view of the above facts and finding we direct the first applicant, M/s. Sita Singh and Sons (P) Ltd., to make a pre-deposit of Rs. one crore within 12 weeks from the date of the order and report compliance on 26-7-2012. Subject to such pre-deposit there shall be waiver of pre-deposit of balance of dues from this applicant and also the penalty imposed on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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