M/S SWETHA ENGINEERING LTD. Vs. COMMISSIONER OF CENTRAL EXCISE,CHENNAI
SUPREME COURT OF INDIA
M/S Swetha Engineering Ltd.
Commissioner Of Central Excise,Chennai
Click here to view full judgement.
A.K.SIKRI, J. -
(1.) Appellant/Assesee herein is the manufacturer of machinery and parts for marketing pulp and paper, steel fabricated structures.
(2.) On a scrutiny of the sales for the year 1997 -98,it was noticed that the said company had dispatched steel fabricated, structures for mounting the boilers and their
accessories to M/s Gujarat Torrent Energy Corporation
Ltd. on behalf of M/s Deutshe Babcock Balcke Durr
Limited, Chennai and M/s HPL Co.Gen. Ltd., Midnapore on
behalf of M/s Mitsui Babcock Energy (I) Pvt.Ltd.,
Chennai. The assessee had treated these fabricated
structures as a part of boiler and clasified them under
chapter heading 8402.90 attracting 13% E.D. whereas they
appeared to be classifiable as steel structures falling
under chapter 7308 attracting 15% E.D. Hence three show
cause notices were issued on 5.11.1997, 16.04.1998 and on
13.07.1998 directing the assessee to show cause as to why differential duty of Rs.6,89,156.65/ - should not be
demanded from it u/s 11A of the Central Excise Act, 1944.
(3.) The assessee has filed its reply contending that
it has rightly classified them under Central Excise
Tariff sub heading 8402.90 in its 173B declaration filed
on 03.03.1997 and again in declaration dt.02.04.1997,
describing them as "Boiler Structure/Steel Structure for
Boilers" as described by the customer in their purchase
order. It further stated that whatever it has
manufactured against the purchase order is only boiler
component falling under the Indian Boilers Act and rules
framed thereunder. It further stated that it has got the
license/certificate from the boiler inspector since the
said items cannot be manufactured without said
Copyright © Regent Computronics Pvt.Ltd.