| CHENNAI
II COMMISSIONERATE |
| Orders issued by Commissioner (A) & CEGAT |
| S.No |
Forum |
Order-in-Appeal No. & Date |
Subject in Brief |
Decision |
Status |
| SEPTEMBER 2001 |
| 1 |
Commissioner
(A) |
38/2001 (M-II) (D) 09/07/2001 |
Classification of gear case covers etc., whether under chapter heading 8483.00 or 87
|
Held that they are classifiable under CSH 87 - favouring department |
Accepted on 20/09/2001 |
| 2 |
Commissioner (A) |
143/2001 (M-II) 26/06/2001 |
Non inclusion of value of bought out items in the Assessable Value of final product
|
Held that they are includible - favouring department |
Accepted on 21/09/2001 |
| AUGUST
2001 |
| 1 |
Commissioner (A) |
149/2001 M-II 26/06/2001 |
Classification of sliding doors & gear cases - Whether under CSH 8607 or 8483 |
Held that they are classifiable under CSH 8607 - favouring department |
Accepted on 30/08/2001 |
| 2 |
Commissioner (A) |
47/2001 M-II 28/02/2001 |
Whether overheads are to be calculated as per the Balance Sheet or on a notional basis while arriving at the Assessable Value for goods cleared on stock transfer basis to sister units |
Held that notional overheads can be added - favouring assessee |
Accepted on 14/08/2001 |
| July-01 |
| 1 |
Commissioner (A) |
37/2001 M-II 27/02/2001 |
Classification of compressed natural gas conversion kit -
whether under CSH 8409 or 8708 |
Held that they are classifiable under CSH 8708 - favouring
department |
Accepted on 06/07/2001 |
| 2 |
Commissioner (A) |
117/2000 M-II 12/06/2001 |
Classification of plastic models used for displaying garments -
whether under CSH 9502 or 9618 |
Held
to be classifiable under CSH 9618 - favouring department |
Accepted on 26/07/2001 |
| 3 |
Commissioner (A) |
116/2001 M-II 26/06/2001 |
Classification of Mahabringol hair oil - whether under CSH
3003.31 or 3305.99 |
Held
to be classifiable under CSH 3305.99 - favouring department |
Accepted on 30/07/2001 |
| June 2001 |
| 1 |
Commissioner (A) |
79/2001 (M-II) dated 10/04/2001 |
Eligibility to notification No. 75/94 dated 29/03/1994 for
clearance of 'Mahabhringol' oil at 'NIL' rate of duty |
Held that the assessee is not eligible for exemption Favouring Department |
Accepted |
| 2 |
Commissioner (A) |
85/2001(M-II) 10/04/2001 |
Eligibiity to Notification No. 5/99 dated 28/02/1999 for items
cleared for use as pollution control equipments |
Held that the assessee is eligible for exemption - Favouring
assessee |
Accepted |
| 3 |
Commissioner (A) |
20/2001 (M-II) (D) 08/03/2001 |
Classification of 'Sprochets' intended for M.V. - Whether under
chapter 8483.90 or 8708/8714 |
Held that the item is classifiable under chapter 87 - Favouring
Department |
Accepted |
| 4 |
Commissioner (A) |
25/2001 (M-II) (D) 08/03/2001 |
Whether notional interest of 10% is to be added to the
Assessable Value of the goods when cleared by job-worker on behalf of
manufacturer to the Customer. |
Held that the interest need not be added - Favouring Assessee |
Accepted |
| CEGAT CASES -
"NIL" |
| April-01 |
| 1 |
Commissioner (A) |
51/2001 (M-II) dt. /03/2001 |
Non inclusion of profits earned on account of freight charges in
the Assessable Value |
Held to be non-includible-Favourable to assessee |
Appeal filed on 30/04/2001 |
| 2 |
Commissioner (A) |
152/2000 (M-II) dt. 26/12/2000 |
Non-inclusion of warehousing surcharges and freight surcharges
in the Assessable Value for sale from upcountry depots on the pretext that
the assessee adopted the sale price at Chennai depot which is nearer to the
factory |
Held to be includible by the proper interpretation of the term
of "Place of removal" asappearing in the amended Sec. 4 of the Act.
- Favourable to Department |
Accepted on 09/04/2001 |
| 3 |
Commissioner (A) |
34/2000 (M-II) (D) dt. 22/12/2000 |
Non-Payment of duty on All-castings captively used in the
manufacture of final products which are exempted |
Held that duty is payable - Favourable to Department |
Accepted on 16/04/2001 |
| 4 |
Commissioner (A) |
10,11 & 12/2001 (M-II) dt. 22/01/2001 |
Classification of front end structure-Whether under 8707 or
under 8708 |
Held that it is classifiable under 8707 - Favourable to Department |
Accepted on 02/04/2001 |
| July-01 |
| 1 |
CEGAT- NEW DELHI |
Misc. Order. No. 54/2001 (b) 13/06/2001 |
Whether the value of goods under a gate pass for invoice would
be split up for the purpose of calculation aggregate value for allowing
exemption under notfn. No. 175/86 |
The
tribunal held that the value can be split up and exemption extended up to
maximum limit of aggregate value provided in the notification |
Accepted |
| 2 |
CEGAT - CHENNAI |
717/2001 |
Whether invoice price of goods cleared without payment of duty
shall be treated as cum duty price on subsequent demand of duty on the goods. |
Tribunal held that invoice price under such circumstances shall
be treated as cum duty price |
Department has recommended to file a civil appeal |
| April-01 |
| 1 |
CEGAT |
282-284/2001 dt. 16/02/2001 |
Whether
duty paid on the waste plastic and scrap arising during the course of
processing of the final goods can be taken as MODVAT when the same was retained in the factory and later
cleared to the job worker without payment |
Tribunal held that taking the credit back will nullify the
initial payment of duty on theinputs and hence on the subsequent removal of
the same duty shall have to be paid distinguishing the case from the decision
of the Larger Bench of the Tribunal in the case of Wyeth Laboratories Ltd vs.
CCE, Bombay 2000 (120) ELT 218 (T) |
Accepted on 02/05/2001 |
| 2 |
CEGAT |
294/2001 dt. 16/02/2001 |
Whether modvat availed inputs goods and capital goods can be
lent to another factory by clearing the same without payment of duty |
Held that such goods are to be cleared only on payment of duty
or on permission under Rule 57F/57S to job worker. There is no concept of lending the goods without payment of
duty |
Accepted on 02/05/2001 |
| ~MARCH-2001 |
| 1 |
Commissioner (A) |
03/2000 (M-II) dt. 16/01/2001 |
Classification of Jute felt whether under CSH 5602.90 or 5907.90 |
Held that they are
classifiable under csh 5602.90 by holding that the HSN note definiing 'felt'
does not say that felt is produced only or exclusively out of wool or animal
hair or mixture of these fibres with other natural fibres. Further reliance was placed on Sl.No.107
of notification 5/99 CE dated 26/02/1999 where jute felt has been exempted by
giving chapter heading 5602.
Favourable to the assessee |
Accepted |
| 2 |
Commissioner (A) |
12/2001 (M-II)
(D) dt. 24/01/2001 |
Non-Inclusion of Inspection charges by third party in the
Assessable Value |
Held that Inspection charges by third party is not
includible
Favourable to the assessee |
Appeal filed |
| CEGAT CASES -
"NIL" |
| 1 |
Commissioner
(A) |
112/2000
(M-II) dt. 28/09/2000 |
Whether the
assessee is entitled to the credit of Modvat earned on transformer oil
(2710.90) and trichloro etylen(2903.90) when the oil waste are cleared from
the factory on sale |
Held that the assessee is not entitled to
the benefit and the demand for duty on the said clearances is
sustainable. Favourable to
Department |
Accepted |
| 2 |
Commissioner (A) |
117/2000 (M-II) dt. 20/10/2000 |
Classification of unmounted
brake linings having a basis of glass fibre whether under heading 7014.00 or
8708 as claimed by the assessee |
Held that the subject goods
have been rightly classified under CET 7014.
Favourable to Department |
Accepted |
| 3 |
Commissioner (A) |
15/2000 (M-II) (D)dt.
22/09/2000 |
Whether Control Panels are
eligible to the benefit of exemption
provided against Sl.No.12 to
notification 205/88 CE dt. 25/05/88 covering wind mills, part of wind
mills and any specifically designed devices which run on wind mill. |
Held that the same are rightly classifiable under 8502 and not
under 8537 as contended by Revenue and entitled to the benefit of
exemption. Favourable to Assessee |
Accepted |
| 4 |
Commissioner (A) |
122/2000 M-II dt. 14/11/2000 |
Whether cut lengths of nylon mono filament yarn of diameters 210,330,420,630,840,1050 etc are eligible
to the benefit against Sl.No. 119 of Notification 5/98 CE dt. 2.6.98 as since cut lengths cannot be regarded as
yarn to extend the benefit of the Notification |
Held that the assissee is
entitled to the benefit of the Notification as Heading 5404 would also cover
cut lengths as per HSN explanatory Notes. Favourable to Assessee |
Accepted |
| 5 |
Commissioner (A) |
125/2000 (M-II) dt.
21/11/2000 |
Classification of steel
fabricates structure as per specific design and drawings prescribed under the
Indian Boilers Act, Whether under 7308.90
or as parts of boilers under 8402.90 as claimed by the assessee |
Held that the steel
fabricator sturctue is rightly classifiable under 7308.90 and not under
8402.90. Favourable to Assessee |
Accepted |
| 6 |
Commissioner (A) |
115/2000 (M-II) dt.
18/10/2000 |
Whether the heating elements
captively consumed for the Manufacture of immersion heater are exempted from
payment of duty under Notification 56/93 CE dt. 01/03/93 having been used in
the Manufacture of electrical appliances |
Held that heating element is
not marketable as such and therefore cannot be subjected to the levy. It was further held that the larger period
of limitation is not invokable in this case. Favourable to Assessee |
Accepted |
| 7 |
Commissioner (A) |
22/2000 (M-II) (D) dt.
15/11/2000 |
Classification of various
types of transformer coils whether under 8504 as parts of TV/radio sets under
or 8529 as claimed by Revenue |
Held that the impugned goods are rightly classifiable under 8504
only. Favourable to Assessee |
Accepted |
| 8 |
Commissioner (A) |
123/2000/ (M-II) dt.
21/11/2000 |
Refunds filed under Rule
57F(13) of the Central Excise Rules.
As Commissioner had held certain part of the refunds earlier
sanctioned under this rule as erroneous the claims were restricted to the
extent permitted by the Commissioner, on a request from the assessee
reserving their right to claim the balance based on the outcome of the appeal
file by them against the order of the Commissioner before CEGAT. Party succeeded in appeal and the
reference filed by the Revenue was also rejected. However a revision application filed before the Hon'ble High
Court is pending. The AC however
rejected the claim on ground that his earlier order was not appealed against. |
Held that the assessee is entilted to the refund as the order of
the Tribunal had not been stayed.
Also held that the order of rejection of the subsequent claim for
refund for the balance is not proper and legal. Favourable to Assessee |
Accepted |
| 9 |
Commissioner (A) |
127/2000 (M-II) dt.
21/11/2000 |
Whether an unit registered
under DGTD Manufacturing exempted final products is liable to pay duty on the
ferrous waste and scrap obtained during the course of manufacture in the
light of Notification No.1/93 dt.28/2/93 as then existing and whether the extended
period of limitation would be applicable to the case |
Held that the assessee would
not be eligible for the SSI exemption nor would they be entitled to Modvat
credit as their final products is not being subject to payment of duty. Extended period of limitation also held to
be applicable. Favourable to
Department |
Accepted |
| 10 |
Commissioner (A) |
128/2000 (M-II) dt.
23/11/2000 |
Whether ice cream machinery
falling under CET 8418.10 not covered by Rule 57Q eligible for capital goods
Modvat Credit on the ground that it is necessary and essential for the
Manufacture of ice cream |
Held that the impugned goods
are not eligible for the capital goods Modvat credit. Favourable to
Department |
Accepted |
| 1 |
CEGAT |
1397/2000 Dt. O5/10/2000 |
Eligibility of exemption
under notification 175/86 to goods bearing the brand name of a foreign
company |
Following the larger Bench
decision of the Tribunal in the case of Namtech System & Others Vs
Commissioner of Central Excise Bangalore (2000(36) RLT 35-CEGAT-LB held that
the benefit of SSI exemption not extendable on such goods.
Favourable to Department |
Accepted |
| 2 |
CEGAT |
1270/2000 dt. 06/09/2000 |
Data acquisition and control systems whether classifiable under
heading 9032 or under 8471 as claimed by Revenue |
Held that the same is
rightly classifiable under 9032.
Favourable to Assessee |
Accepted |
| 3 |
CEGAT |
1338/2000 dt. 26/09/2000 |
Whether jigs and fixtures
are excisable and if so whether eligible for benefit of exemption
notification 220/86CE dt. 2/4/86 |
Held that Marketability of
the goods is established in this case and hence they are excisable. As the subject goods are cleared outside
the factory to the job worker not eligible for the benefit of Notification
220/86CE as the exception to the Notification had to be construed strictly.
Favourable to Department |
Accepted |
| 4 |
CEGAT |
1249/2000 Dt. 4.9.2000 |
Whether notional Profit of
10% is to be added for determining the assessable value when goods are
captively consumed interms of Rule
6(b) (ii) of the CE Valuation Rules, 1975
when assessee had not earned any profit during that particular year. |
Held that notional profit of
10% need not be added as the Rule provide inclusion of profit if any earned
by the assessee. Favourable to
Assessee |
|
| 5 |
CEGAT |
1399/2000 dt. 05/10/2000 |
Classification of aluminium
water tanks manufactured as per drawings and technical specifications of
railway meant for coaches whether under 8607 or under 7611 as contended by
Revenue |
Based on CBEC circular NO.31/93 dt. 22/11/93 held the same
rightly classifiable under 8607.
Favourable to Assessee |
Accepted |
| 6 |
CEGAT |
1521/2000 dt. 07/11/2000 |
Whether warranty charges and
advertisement expenses on computers marketed thro' the sister concern of the
assessee is includible in the Assessable value. |
Held that in the facts and
circumstances of the case, they are includible in the assessable value. Favourable to Department |
Accepted |
| 7 |
CEGAT |
1524/2000 dt. 06/11/2000 |
Whether affixing the sticker
containing the name of the foreign company registered in India and holding
SSI registration would disentitle the benefit of exemption under notification
No.175/86 |
Held that the benefit of SSI
exemption cannot be disallowed in such cases. Favourable to Assessee |
Accepted |
| 8 |
CEGAT |
1525/2000 dt. 06/11/2000 |
Clearance of Motor, gears,
fans, heaters, pneumatic temperature recording controller cleared in CKD
condition as complete system but dispatched in different convoy trucks for
purpose of transportation whether to be classified as system as a whole or to
be assessed as individual parts. |
Held the same to be assessed
as a conveyor system and not as specific parts. Favourable to Assessee |
Accepted |
| 1 |
COMMR (A) |
134/2000 23/11/2000 |
Classification of
Mahabringol oil whether under CSH 3305.99 or 3003.3 |
Held that Mahabringol oil is
classificable under CSH 3305.99 |
ACCEPTED |
| 2 |
CHENNAI COMMR (A) |
151/2000 26/12/2000 |
Classification of gear box
whether under CSH 8708 or 8483.90 |
Favourable to Department
Held that gear box is classificable under CSH 8483.90 - Favourable to
Assessee |
Review taken |
| 3 |
CHENNAI COMMR (A) |
31/2000 23/11/2000 |
Abnormal variation in price
between sales by sole selling agent and to others adopted for branded goods |
Held that price at which
sole selling agents sell should be A.V. - Favourable to Department |
Accepted |
| 4 |
CEGA T 3 Member Bench CHENNAI |
Final order No. 1557/2000
dt. 21/10/2000 |
Eligibility to exemption to
Cement floor tiles under Sl.No. 4 of the Table annexed to notification No.
59/90 CE dt. 20/03/1990 |
Held that Floor tiles are
covered by the exclusion clause against Sl.No.4 of the Table annexed to the notifn. No. 59/90 CE dt. 20/03/1990
and hence exemption cannot be extended. |
ACCEPTED |
| 5 |
CEGA T 3 Member Bench CHENNAI |
Final Order No. 1634/2000
dt. 28/11/2000 |
Whether penalty need be
imposed when the assessee paid the duty even before issue of Show Cause
Notice for imposition of penalty alone when
there is no allegation of ‘mens rea’ |
Held though ‘mens rea’ is
not a stipulated ingredient essential in some of the clauses of R 173Q, visit
of penalty would depend upon its existence.
Hence imposition of penalty
was set aside. |
Accepted |
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