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 license/certificate.;