TMI Blog2016 (3) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Appellants are solely supplied to Voltas Ltd to their Aircondioning manufacturing unit. We find that the Appellant were submitting their Classification List during the aforesaid period from time to time in respect of the goods manufactured by them which were supplied to Voltas Ltd. We also observed that alongwith the Classification Lists, the appellant were also filing drawings of the products supplied by Voltas Ltd. to the department. On careful perusal of the drawings, we have seen that the drawing clearly indicates Air-condition and it’s model, for example: “1.5 T RAC”, “1.5 TON NEW SPLIT RAC”, “1.5 TON RAC HI-TECH”. From the said details given in the drawings submitted alongwith classification list, it can be known that the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firmed duty demand of ₹ 21,52,314, imposed penalty of ₹ 16,16,210/- under Section 11AC of CEA, 1944, imposed personal penalty of ₹ 2,00,000/- on Shri. Sharad B. Shah, Director of M/s. Crescent Components (P) Ltd under Rule 209A of Central Excise Rules, 1944 and also ordered for recovery of appropriate interest under Section 11AB. 2. The fact of the case is that the appellants are engaged in the manufacture of goods viz. Springs Sheet Metal components since 14/9/1993. The appellants have filed a declaration under Notification No. 13/92(NT) dated 14/5/1992 claiming exemption (i) under Notification No.1/93 CE dated 28/2/1993 and (ii) from Licensing control. The appellants in their Classification Lists/Declarations filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wings supplied by M/s. Voltas they cannot make out the end use of the product and they have never enquired with them regarding the end use of the product. 2.2 Appellants on being informed by the Deptt. started paying higher duty under the protest on the product Grill Assembly and Back Grill under Chapter heading 8415.00 FROM 13/10/1995. The said goods were manufactured as per the drawings/specifications of the party(i.e. M/s. Voltas Ltd) and since those were tailor made items these could find end use only as parts of Air Conditioners or Parts of compressors of Room Air Conditioners under Chapter sub-heading 8415.00 and 8414.91/8414.92 with different rates of duty as applicable. 3. On the basis of above investigations, the show ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... copies of the drawings supplied by M/s. Voltas Ltd indicating the number and description of the parts being manufactured by the appellant. The Range Superintendent had visited the factory on 22/9/1995 and directed the appellant to re-classify the grills under sub-heading 8415.00 leaving the other products in the classification list unchanged. He had also on 17/10/1995 drawn samples of four products duly sealed in the presence of the appellant. None of these classification lists was disputed by the department. He submits that their monthly RT 12 returns were approved from April 1996 onwards confirming the classification of the products under sub-heading Nos. 7326.90 and 7318.90. Appellants factory was also audited on 5/11/1996 and there wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) ELT 408(Tri. Bang.)] 5. Shri. R.K. Maji, Ld. Asstt. Commissioner(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. 6. We have carefully considered the submission made by both sides. On hearing and perusal of records, we are of the view that the appeal can be disposed of on the issue of limitation itself. Hence we are passing this order without going into merit of the classification issue of the products in question. 6.1 We find that the show cause notice dated 09.09.98 was issued for the period 14.09.93 to 31.03.97 i.e. entire demand raised is for the period before one year of the issue of show cause notice. Hence the total demand is covered under extended period as provided in the first pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... different buyers and not only to Voltas Ltd. therefore from their point of view they are of bonafide belief that all the items such as washers, springs and other articles of steel manufactured by them are classifiable in the specific tariff entry given therefor. We find that the bonafide belief of the appellant for classification of the goods can not be doubted in view of the above undisputed facts. The Ld. Adjudicating Authority should not have invoked the extended period as there is no suppression of the facts on the part of the appellants. The entire demand, therefore, is hit by limitation. The judgments on the identical facts and law point on classification of Refrigerator Parts in the case of R.B. Precision Components (supra) directly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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