TMI Blog2000 (6) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... pipes are to be classified along with the entire system under heading 8424.00 and entitled to exemption under Notification No. 46/94, the department's contention is that the main pipe having been made of plastic material is classifiable under Heading 39.17. Accordingly, vide the impugned order the Commissioner of Central Excise, Calcutta-1 has confirmed demand of duty of ₹ 33,59,064.00 for the period 04.04.1994 to 20-12-1994 by classifying the HDPE pipes and fittings under chapter heading 3917.00. Personal penalty of equivalent amount has also been imposed under Section 11AC of Central Excise Act, 1944. Shri S.K. Roychowdhury submits that apart from the fact that the classification is covered in their favour by the Tribunal's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mponents such as bends/reducer tees connectors and end plugs etc. The main line comprises of specially made HDPE (plastic pipes) and plastic parts, main line coupler, male end coupler, latch cam and rubber gaskets and normally of lengths of 6 meters and 3 meters. As such pipes are specially designed depending upon the discharge load, surface alleviation and the required pressure head at the inlets to the sub-mains and manifolds and of required diameter starting at the downstream end and moving gradually towards the water source. Submains are branched out of the main by means of reducers/reducer pipes/Bends and activated through sprinkler adaptors attached to riser pipes coupled with riser outlet tees. The total equipment is connected with w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luded in any of the headings of chapter 84 or chapter 85 of the said Tariff Act. The Revenue has not placed any evidence on record to dispute the factual position placed by the appellants that the pipes in question are specially designed to work exclusively with the sprinkler irrigation system. We also note that the articles of Section XVI are excluded from chapter 39 by note 2(N). 6. The decision of the Tribunal relied upon by the ld. Advocate is also appropriate inasmuch as it was held in that case that LDPE/HDPE pipes specially designed parts to carry out the functions of distribution or dispersing or spraying of water cannot be treated as general purpose pipes and have to be classified under heading 84.24 as component parts of drip i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er and as such cannot be considered as ordinary pipes classifiable under chapter 39. After writing these letters and after giving detailed description of their product, the department accepted the stand of the appellants that the goods fall vinder heading 84.24. Thereafter a show cause notice was issued on 28.01.1997 raising demand of duty for the period 04.04.1994 and 20-12-1994. As such we find that the entire facts were before the Revenue and the issuance of the show cause notice in the year 1997 only reflects upon change of opinion on the part of the Revenue' as regards the correct classification of the product in question. We do not find any merits in the contention of Shri Roy that after having been informed about the opinion of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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