Page 77 - ELT_15th May 2020_VOL 372_Part 4th

2020 ] COMMISSIONER OF CENTRAL EXCISE, DELHI-III v. UNI PRODUCTS INDIA LTD. 467

sub-headings have been referred to as 8708.99.00 and 5703.90.90 and in the order
of the Tribunal also, the sub-headings have been referred to as such. But the au-
thorities themselves in certain places described the sub-headings in shorter nu-
merical forms, as 5703.90 and 8708.00. We find these minor variations in the pa-
per-book. But this variation of the sub-headings represented in numerical form is
not of any significance so far as adjudication of these appeals are concerned. The
respondent were also to answer as to why penalty should not be imposed upon
them in terms of Section 38A of the Central Excise Act, 1944 read with Rule 25 of
the Rules made thereunder. The first show cause notice is dated 9th August, 2005
in regard to clearance of goods made during the period between 9th July, 2004
and 31st March, 2005. They had cleared altogether 8,65,777 pieces of those items
in different sizes in that period. The second show cause notice was issued on 2nd
May, 2006 and related to clearance of 12,02,482 pieces of the same goods for the
period between 1st April, 2005 and 31st January, 2006. The third show cause no-
tice is of 7th March, 2007 and the clearance involved 20,15,412 pieces from 1st
February, 2006 to 31st January, 2007. For the period involved in the third show
cause notice, clearance was made by the respondent under Chapter sub-heading
No. 570500.19, which carried effective rate of duty @ 8%.
2. By the time the third show cause notice was issued, the adjudicating
authority of first instance (Commissioner Central Excise, Delhi-III) had passed
the order against the respondent on 29th September, 2006, upon considering
their responses to the said two show cause notices. In this judgment, we shall
mainly refer to this order, while examining the decision of the Tribunal. The au-
thorities’ stand has been that the subject-items ought to be classified under sub-
heading 8708.99.00. Against Chapter Heading 8708, the goods described are
“parts and accessories of motor vehicles of Headings 8701 to 8705”. The sub-
headings against Tariff Item Nos. 8701 to 8705 refer to five categories of vehicles.
These are (i) tractors (except those falling under 8709), (ii) motor vehicles for the
transport of ten or more persons, including the driver, (iii) motor cars and other
motor vehicles principally designed for the transport of persons (other than those
of Heading 8702) including station wagons and racing cars (iv) motor vehicles
for transport of goods (v) special purpose motor vehicles, other than those prin-
cipally designed for the transport of persons or goods. The description of goods
in Chapter 87 of the Central Excise Tariff of India (2004-05) in the eight digit for-
mat list the Tariff Items of Chapter 8708 have been depicted in the following
manner :-

“Tariff Description of Goods Unit Rate
Item of
duty
(1) (2) (3) (4)
8708 - Parts and accessories of the motor vehicles of
headings 8701 to 8705
8708 10 - Bumpers and parts thereof : Kg 16%
8708 10 10 - For tractors Kg 16%
8708 10 90 - Other Kg 16%
- Other parts and accessories of bodies (including Kg 16%
cabs) :
EXCISE LAW TIMES  15th May 2020  77