Motor vehicle body fabrication does not qualify for motor vehicle exemption; provisional assessment objection also failed.

Fabricating bodies on chassis was treated as manufacture of motor vehicle bodies under Heading 87.07, not as manufacture of motor vehicles themselves. Because the assessee only fabricated bodies on chassis supplied by customers, the exemption for Fuel Efficient Light Commercial Motor Vehicles under Notification No. 462/86-C.E. was unavailable. The objection to provisional assessment was rejected, as the order directing that assessment had not been challenged when made. The Revenue's appeal accordingly succeeded and the exemption claim failed.

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Issues: Whether fabricating bodies on chassis amounts to manufacture of motor vehicles so as to entitle the assessee to the benefit of Exemption Notification No. 462/86-C.E.; and whether the assessee could resist provisional assessment on the ground that the dispute related to exemption eligibility.

Analysis: The bodies fabricated on chassis supplied by customers were held to fall under Heading 87.07, while Heading 87.07 covers bodies for motor vehicles and not the manufacture of motor vehicles themselves. Since the respondents were engaged only in fabricating bodies on chassis and not in manufacturing motor vehicles, the exemption meant for Fuel Efficient Light Commercial Motor Vehicles could not be extended to them. The objection to provisional assessment was also rejected because that order had not been challenged when made.

Conclusion: The assessee was not entitled to the exemption under Notification No. 462/86-C.E., and the Revenue's appeal succeeded.

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