JAY YUHSHIN LTD. Vs. CCE

JUDGEMENT

(1.) The appellant in this case challenges the classification of "heater control lever" and "panel heater control' (Hereinafter referred to as, "impugned goods"). The company is manufacturing auto -electrical, mechanical and electronic equipments. A major portion of applicants' production is sold to M/s Maruti Udyog Ltd. Gurgaon (for short "MUL"). Whatever duty is paid by the applicants on the items manufactured and cleared by them. MUL takes the same as MODVAT credit

(2.) Applicants started manufacture of the impugned goods from the year 1991 -92. These items are used in the various models of Maruti cars both A/c and non A/c like Esteem, Maruti 1000, Zen Gypsy, 800 cc etc. They filed classification lists with the Central Excise Department under Rule 173B of the Rules from time to time. In these classification lists, applicants claimed classification of these two items under Heading No. 84.14, sub -heading No. 8414.99. All these classification lists were approved by the Department from time to time. Based on the approved classification lists, applicants had been clearing the said goods on payment applicable central excise duty under sub -heading No. 8414.99 of the Tariff.

(3.) A show cause notice dated 18.3.1999 was issued by the Commissioner of Central Excise, Delhi -Ill proposing to classify the said goods under sub -heading No. 8415.00 and demand differential duty of Rs. 1,99,60,142 for the period from 1994 -95 to 1997 -98. The notice invoked the extended period of limitation under proviso to Section 11A of the Act by alleging suppression of facts on the part of the applicants.