ORDER
C.N.B. Nair, Member (T)
1. Heard both sides and perused the record.
2. The dispute is about the classification of motor vehicle items supplied by the applicant/appellant company to M/s. Vehicle Factory, Jabalpur. The duty-demand has been made by classifying the goods under heading 87.06, while the assessee had paid duty after classifying the items under 87.08.
3. A perusal of the relevant records shows that various motor vehicle parts like Engine Frame, Cabs, Gear Boxes, Axles etc. were supplied separately and not after assemblying. Heading 87.06 is specific for “chassis fitted with engines”. Since the parts in question are not assembled in the assessee’s factory and cleared as assembled units they cannot come under 87.06.
4. In view of the above, the demand is prima facie not sustainable. Stay Petition is allowed and recovery stayed till disposal of the appeal
5. Since the dispute is recurring in nature, there shall be a direction to post this appeal for early hearing on 12-3-2007.
(Pronounced in the open court.)