M/S SUNAREN INDUSTRIES Vs. CCE, RAJKOT

JUDGEMENT

(1.) IN the present appeal filed by M/s Sunaren Industries, the issue involved are whether the gears manufacturer by them are classifiable under Heading 84.48 of the Schedule to the Central Excise Tariff Act, claimed by them or under Heading 84.83 as classified by the collector; whether they are affixing their goods with brand name "LMS" of another person so as to make then ineligible for the benefit under Notification No. 175/86 -CE dated 1.3.1986 and whether M/s LMS Marketing Pvt. Ltd., are their related person in terms of Section 4(4) (c) of the Central Excise.

(2.) THE learned Advocate, further, mentioned that the gears manufactured by them are solely and principally suitable for use of dobby machines and as such are classifiable under Heading 84.48 in terms of Note 2(b) to Section XVI of the Central Excise Tariff; that the Department has not given any reasons for classifying the gears under heading 84.83. He relied upon the decision in the case of the Flakt India Ltd. Vs. CCE, Calcutta : 1999 (108) ELT 203 (T) in which shaft and bearing assembly were classified under sub -heading 8414.99 of CETA as part of an industrial fan and not under Heading 84.83.

(3.) FINALLY he submitted that the Adjudicating Authority erred in concluding that there is a mutuality of interest between the appellants and M/s LMS Marketing Pvt. Ltd.; that the various grounds mentioned in para 5.2 of the impugned order are not only misconceived but are not borne out from the evidence on record. that the extended period of limitation is not invocable as there was no suppression on their part; that no penalty is imposable as the impugned order is totally against the provisions of law.