WALCHAND NAGAR INDUSTRIES Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellant filed this appeal against the order -in -original passed by the Collector of Central Excise, Pune. In the impugned order the Collector of Central Excise held that the parts of conveyors and elevators are rightly classifiable under Sub -heading 8431 and shafts, bearings, bearing housings, couplings, gear boxes, sprockets are classifiable under Heading 8438 of the Central Excise Tariff Act, 1985. The Collector of Central Excise in the impugned order also confirmed the demand of duty short levied amounting to Rs. 8,36,293.72 and also imposed a penalty of Rs. 5 lakhs under Rule 173Q of the Central Excise Rules, 1944.

(2.) THE appellants are engaged in the manufacture of handling/ transportation machinery of sugar and cement plant. The appellants filed a classification list with effect from 1 -3 -1986 and classified parts of conveyors and elevators under Sub -heading 8438.00 or 8474.00 as parts of sugar mill machinery and cement mill machinery respectively. The appellant also claimed classification of shaft, bearing, bearing housing, couplings, sprockets under Sub -heading 8438.00 or 8434.00 as parts of sugar mill machinery and cement mill machinery.

(3.) THE show cause notices dated 9/16 -12 -1987 issued to the appellants alleging that the parts of conveyors and elevators of sugar mill machinery or cement mill machinery should not be classified under proper Sub -heading 8431.00 and 8483.00 respectively and a demand of Rs. 8,36,293.72 for the period from 1 -3 -1986 to 31 -10 -1987 was also made under Rule 9(2) of the Central Excise Rules, 1944 read with Section 11A of the Central Excise Rules. Penalty amount also was proposed under Rule 173Q of the Central Excise Rules. After adjudicating the impugned order was passed.