9911796707
TMI Blog2008 (3) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... Adjuster Assembly slider seat, YF-2, Rear Back Lock Assembly and 1000 CC Rear Back Lock Assembly. It submitted its classification list in the year 1986 under Central Excise Tariff Act, 1985 (for short 'the tariff Act') classifying its products under chapter heading 8708.00 as "parts and accessories of motor vehicles" which attracted the 15% rate of duty. The classification list filed by the assessee was approved. Acting on a specific information that the assessee was short paying the excise duty by classifying its products as motor vehicles parts and accessories, the factory premises of the assessee was visited by a team of officers of Central Excise MOD-III on 8.12.1998. They physically verified the items being manufactured by the assessee. Statement of Shri Ashwani Kumar, authorised signatory of the assessee was recorded under Section 14 of the Act. In his statement, he admitted that they were supplying Rail Assembly Frost Seat Adjuster and Assembly Slider Seat to M/s. Bharat Seats Ltd. and M/s. Krishna Maruti Ltd. which were manufacturing car seats falling under chapter heading 9401.00 and were supplying to M/s. Maruit Udyog Li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passengers and they are not essential components or parts of seats. That the seats are complete in themselves without these mechanisms and therefore do not merit classification as parts of seats under Chapter 9401.00. Tribunal relying upon a judgment of this Court in the case of Mehra Brothers v. Joint commercial Officer reported in 1991 (51) ELT 173(SC) held that the products manufactured by the assessee merited classification under chapter heading 8708.00 as "parts and accessories of motor vehicles".Hence revenue is before us. Learned senior counsel appearing for the revenue contends that the products manufactured by the assessee are parts of the seats because assessee was supplying these products to M/s Bharat Seats Limited and M/s Krishna Maruti Limited which were manufacturing seats classifiable under chapter heading 9401.00.Per contra, counsel appearing for the assessee contends that the products manufactured by the assessee are not seats or parts of the seats as contemplated under chapter heading 9401.00. The seat is complete without the said products as rightly concluded by the Tribunal. With regard to rail assembly front seat a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty 87.08 8708.00 Parts and accessories 15% of the motor vehicles of heading Nos.87.01 to 87.05 94.01 &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ti Udyog Limited. Merely supplying the material through M/s Bharat Seats Limited and M/s Krishna Maruti Limited which are manufacturing seats classifiable under chapter heading 9401.00 does not lead to the conclusion that the products in question fall under chapter heading 9401.00. In Mehra Brothers(supra), this court observed in para 6 as follows: 6. In Supreme Motors v. State of Karnataka case(supra), the Karnataka High Court has taken different view. It held that the car seat covers, at best could make the seat more comfortable, but do not serve as aids to the vehicle as a whole, and therefore, they must fall outside the ambit of Entry 73 of the Second Schedule to the Karnataka Sales Tax Act, 1957 and was not exigible to sales tax at 13 per cent. Undoubtedly this ratio would help the appellant. The learned judges laid emphasis thus:-- "Every part is useful to the car for its effective operation. Likewise should be the aid of other accessories in order to fall within the said entry. The accessory to a part which has no convenience of effectiveness to the entire car as such cannot in our ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
