E/2199/2001/B wherein and whereby The Tribunal relying upon a judgment of the High Court of Karnataka in the case of Supreme Motors v. State of Karnataka has allowed the appeal filed by the assessee respondent.
Tribunal came to the companyclusion that the items manufactured by the assessee are only adjuncts, additions to the seats for the better utilization of the seats for companyfort and companyvenience of the passengers and they are number essential companyponents or parts of seats.
Acting on a specific information that the assessee was short paying the excise duty by classifying its products as motor vehicles parts and accessories, the factory premises of the assessee was visited by a team of officers of Central Excise MOD III on 8.12.1998.
Statement of Shri Ashwani Kumar, authorised signatory of the assessee was recorded under Section 14 of the Act.
The adjudicating authority vide its order dated 24.11.1999 held that the goods manufactured by the assessee were integral parts of seats and available in the market as such and companyfirmed the duty demand of Rs.9,50,995/ and imposed a penalty of Rs.2,00,000/ under Rule 173Q of the Rules and also ordered to charge interest on the differential duty of Rs.9,50,995/ .
Hence revenue is before us.
Assessee thereafter filed an appeal before the Tribunal.
From the information gathered on the inspection of the factory premises of the assessee and the statement of Shri Ashwani Kumar, authorised signatory of the assessee, the department came to the companyclusion that the items manufactured by the assessee were classifiable under chapter heading 9401.00 attracting central excise duty at the rate of 18 ad valorem and number under chapter heading 8708.00 paying less duty at the rate of 15.
Facts Assessee respondent hereinafter referred to as the assessee was holding Central Excise Registration No.19 MOR 13 MOD III 92 and engaged in the manufacture of Rail Assembly front Seat Omni , Adjuster Assembly slider seat, YF 2, Rear Back Lock Assembly and 1000 CC Rear Back Lock Assembly.
These are to be affixed on the floor of motor vehicles.
That the seats are companyplete in themselves without these mechanisms and therefore do number merit classification as parts of seats under Chapter 9401.00.
The seat is companyplete without the said products as rightly companycluded by the Tribunal.
The classification list filed by the assessee was approved.
Tribunal relying upon a judgment of this Court in the case of Mehra Brothers v. Joint companymercial Officer reported in 1991 51 ELT 173 SC held that the products manufactured by the assessee merited classification under chapter heading 8708.00 as parts and accessories of motor vehicles.
They physically verified the items being manufactured by the assessee.
In his statement, he admitted that they were supplying Rail Assembly Frost Seat Adjuster and Assembly Slider Seat to M s. Bharat Seats Ltd. and M s. Krishna Maruti Ltd. which were manufacturing car seats falling under chapter heading 9401.00 and were supplying to M s. Maruit Udyog Limited.
With regard to rail assembly front seat adjuster assembly slider seat manufactured by the assessee, it is stated that the item is essentially in the nature of rails made out of iron and steel.
Being aggrieved against the order of the adjudicating authority, assessee filed an appeal before the Commissioner of Central Excise Appeals .
He, however, waived the penalty of Rs.2,00,000/ imposed on the assessee.
Tribunal, by the impugned order, has set aside the orders of the authorities below holding that the products manufactured by the assessee are classifiable under chapter heading 8708.00 as claimed by the assessee and number under chapter heading 9401.00 as put forth by the revenue.
ASHOK BHAN,J. Revenue has filed this appeal under Section 35 L of the Central Excise Act, 1944 for short the Act against the judgment and final order dated 9th April, 2002 passed by the Customs, Excise and Gold Control Appellate Tribunal, New Delhi for short the Tribunal in Final Order No.140/2002 B in Appeal No.
The Commissioner Appeals by his order dated 7th August, 2001 upheld the order of the adjudicating authority classifying the goods under chapter heading 9401.00.
