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TMI Blog2018 (12) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Tariff Act and were paying duty accordingly. As per Notification No. 49/2008- CE (NT) dated 24.12.2008 amended by Notification No. 9/2010- CE (NT) dated 27.02.2010 certain goods were to be assessed to Central Excise duty based on the retail sale price as per Sec.4A of Central Excise Act. These goods included "parts, components and assemblies of automobiles". Since the tubes manufactured by the appellant fall under chapter 40 and not under chapter 87, they continued to pay duty as before and not under the notification read with Sec.4A of Central Excise Act. Show cause notice was issued on 16.05.2008 covering period 01.07.2007 to 31.05.2008 seeking to recover differential duty of Rs. 32,33,013/- by calculating the duty under Sec.4A rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one where the demand was issued based on Board Circular issued under Section 37B of Central Excise Act re-classifying the goods and hence the Circular in that case also uses the word hence forth does not apply. In the case of Mysore Electricals Industries Ltd (supra) again the classification was an issue and a re-classification was sought to be made. The remaining judgments and orders referred to were also on the same lines as the Mysore Electricals Industries Ltd. In this case Notification No. 2/2006 was the basis of the demand and not the Board Circular dated 16.12.2008. Board only issued a clarificatory circular and the demand was confirmed based on the notification. The first appellate authority erred in shifting the focus from the not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vered. Therefore, it is logical that all 'parts, components and assemblies,' irrespective of their classification shall be covered. It is also important to note that there is no specific entry for 'components' or 'assemblies' of automobiles in the Tariff, therefore, this also supports the view that all goods which are commonly known and sold in the trade as 'parts, components and assemblies 'are covered by said entry, irrespective of their clarification in the Tariff. Hence, the term 'parts, components and assemblies' of automobiles includes items like batteries, brake assembly, tyres, tubes and flaps, IC engines, ball bearing, etc. 4. The contents of this clarification may be brought to the notice of trade and industry." 6. From the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Delhi has categorically held that it is untenable to hold that tyres, tubes and flaps are to be considered as parts and components of automobiles and charge duty in terms of Sec.4A of Central Excise Act. The reason for this is that these tyres and tubes are used not only for automobiles but also for animal drawn vehicles, Aircrafts etc. and hence they cannot be considered as parts of an automobile. It is the contention of the learned Counsel that in their particular case most of their tubes were manufactured for tractors or ADVs and not for automobiles. Therefore, in view of the decision in the case of J.K Tyre & Industries Ltd they do not get covered by the notification. 8. We have considered the arguments on both sides and perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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