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2015 (5) TMI 629 - SUPREME COURT

2015 (5) TMI 629 - SUPREME COURT - 2015 (320) E.L.T. 38 (SC) - Classification of hand trolley or fork lift etc. manufactured for captive consumption for use in manufacturing of Parts of motor vehicle - These trolleys and fork lift are placed on iron/steel or aluminum known as "3 FAG Pallets" - Classification under heading No.84.27 or under Heading 84.31 - Held that:- Fork-lift truck is operational without pallets and as such pallets are not parts of the same. If the contention of the Respondent .....

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ssessee.

Benefit of Notification No.67 /95-CE dated 16.3.1995 - Whether the appellant, in respect of the pallets, can claim benefit of Notification No.67 /95-CE dated 16.3.1995, as amended and prevalent on the date when the dispute arose, namely, in the year 1999 - Held that:- It is an admitted position, as explained by the appellant itself, that these pallets which are manufactured/assembled in the factory of the appellant are in the nature of material handling equipment, to keep and .....

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inton Fali Nariman,JJ. For the Petitioner : Mr K Radhakrishnan, Sr. Adv., Mr Niraj Sharma, Adv. and Mr Sumit Kumar Sharma, Adv. For the Respondents : Mr Jaideep Gupta, Sr. adv., Ms Nisha Bagchi, Adv., Ms Sunita Rao, Adv., Mr K Subba Rao, Adv., Ms Pooja Sharma, Adv., Mr Anurag, Adv. and Mr B Krishna Prasad, Adv. ORDER The appellant is having its factory at Devas M.P. and is engaged in the manufacture of motor vehicle parts and accessories, transmission shaft and gears, interchangeable tools etc. .....

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and second issue is as to whether the appellant, in respect of the aforesaid pallets, can claim benefit of Notification No.67 /95-CE dated 16.3.1995, as amended and prevalent on the date when the dispute arose, namely, in the year 1999. The appellant had filed its declaration claiming classification under Chapter Heading 84.31 and had also claimed benefit of the aforesaid Notification. This was denied by the adjudicating authority and the view of the adjudicating authority has been affirmed by .....

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articles of iron or steel 84.31 - Parts suitable for use solely or principally with the machinery of heading Nos. 8425 to 84.30." It is not in dispute that the impugned pallets are made of iron or steel. It is the contention of the respondents that these pallets are in the nature of material handling equipment and are specifically designed to put up in process goods for shifting or transfer and as the pallets are suitable for use solely or principally with the machinery of heading No.84.27 .....

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hout which the particular machinery was not operational or could not suitably discharge the function for which it has been designed". The Tribunal in the said decision has found that inserts were not parts of the excavator as "the excavator was operational even without these inserts and they were meant only to improve the life of the teeth provided with the scoopers". In the present matter also the fork-lift truck is operational without pallets and as such pallets are not parts of .....

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ich was dealing with the classification of Pallet frame assembly which moves on rails. We, therefore, hold that the impugned pallets, being not part of fork-lift trucks, are not classifiable under Heading 84.31 of the Tariff." Insofar as the second question is concerned, namely, whether benefit of exemption under Notification No.67 /95 issued under the Central Excise Act, 1944 is available in respect of these pallets or not, we find that the Tribunal has held that the Notification exempts c .....

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of goods: (i) Capital goods as defined in rule 57Q of the Central Excise Rules,1944 manufactured in a factory and used within the factory of production; (ii) goods specified in column (2) of the Table hereto annexed (hereinafter referred to as 'inputs') manufactured in a factory and used within the factory of production in or in relation to the manufacture of that products specified in column (3) of the said Table; from the whole of the duty of excise leviable thereon which is specified .....

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or supplied to projects funded by the United Nations or an International Organisation, on which exemption of duty is available under the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.108 /95-Central Excise, dated the 28th August, 1995, which are exempt from the whole of duty of excise leviable thereon or are chargeable to 'Nil' rate of duty. Explanation.- For the purposes of this notification 'inputs' does not include- (i) packagin .....

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ariff Act, 1985 (5 of 1986), other than the following, namely,- ( i ) goods classifiable under any heading of Chapter 24 of the Schedule to the said Act; (ii) goods classifiable under heading Nos. 36.05 or 37.06 of the Schedule to the said Act; (iii) goods classifiable under sub-heading Nos. 2710.11, 2710.12, 2710.13 or 2710.19 (except Natural gasoline liquid) of the Schedule to the said Act; (iv) high speed diesel oil classifiable under heading No.27.10 of the Schedule to the said Act. All good .....

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8.02, 58.06 (other than goods falling within sub-heading No.5806.20 ), 60.01 or 60.02 (other than goods falling within sub-heading No.6002.10 ) of the Schedule to the Act,. As per para (i) above, capital goods which are defined in Rule 57Q of the Rules, manufactured in a factory and used within the factory of production are exempted. We perused the definition of "capital goods" appearing in Rule 57Q which was in operation at the material time and find that the goods in question are not .....

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