AUTOMOTIVE COACHES AND Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE Commissioner of Central Excise has demanded duty of Rs. 1.14 crores from the appellants for the period October 2003 to June 2005 in respect of the cabin -fitted chassis cleared to M/s. Ashok Leyland Ltd. He has also imposed penalty of Rs. 15 lakhs on the assessee.

(2.) AFTER examining the records, and considering the submissions made by both sides, we find that the adjudicating authority has classified the subject goods under Heading 87.06 of the CETA Schedule and has accordingly demanded duty thereon. For the purpose of quantification of duty, the authority has accepted the price declared by the assessee. Hence the dispute in this case, by and large, pertains to classification of the item. The decision of the lower authority on this issue is based on Chapter Note 4 to Chapter 87 of the said Schedule for the period upto 28th February 2005 and Note 3 to the said Chapter for the subsequent period. The text of the Chapter Note has remained the same for the entire period of dispute (October 2003 to June 2005) and the same reads as under: Heading No. 8 7.06 shall include chassis, whether or not fitted with a cab.

(3.) ACCORDINGLY , the appellants are directed to predeposit a sum of Rs. 10,00,000/ - (Rupees ten lakhs) for the purpose of Section 35F of the Central Excise Act, 1944 within four weeks and report compliance on 19.6.2006. In the event of due compliance, there will be waiver and stay of recovery in respect of the penalty amount and the balance amount of duty.