2005 (1) TMI 451 - AT - Central Excise

Tribunal rectifies duty credit error for tractor assemblies, allows credit for both dutiable and duty-exempt tractors.

The Tribunal rectified a mistake in its Final Order regarding duty liability on transmission assemblies used in tractor manufacturing. The original order ... Rectification of mistake Issues: Rectification of mistake in the Tribunal's Final Order regarding the duty liability on transmission assembly used in the manufacture of tractors.In the present case, the main issue revolved around the exigibility of Central Excise duty on the transmission assembly used during the manufacture of tractors. The Tribunal's Final Order dated 27-5-2004 had initially held that duty liability must be discharged on the transmission assembly used in the manufacture of tractors. Additionally, the order stated that the appellants were not entitled to take credit for the duty paid on the transmission assemblies since they were used in the manufacture of tractors exempted from duty payment. The appellant, represented by Shri V. Lakshmi Kumaran, argued that they were using the transmission assemblies in both dutiable tractors and those exempted from duty payment, following the procedure outlined in Rule 57CC of the Central Excise Rules, 1944. The appellant requested rectification of the order to allow for the Modvat credit concerning the transmission assembly. The Departmental Representative, Shri H.C. Verma, was also heard on the matter.Upon consideration, the Tribunal found merit in the submissions made by the learned Advocate. It was determined that an error existed in the Final Order, specifically in a sentence in Para 8 on page 15, which needed rectification. The original sentence stating that the appellants could not take credit for duty paid on the transmission assemblies used in the manufacture of duty-exempt tractors was substituted. The revised sentence clarified that the appellants were indeed eligible to take credit for duty paid on the transmission assemblies, regardless of whether they were used in dutiable tractors or those exempted from duty payment, subject to compliance with the procedure prescribed in Rule 57CC of the Central Excise Rules, 1944. Consequently, the Tribunal disposed of the Rectification of Mistake (ROM) application in line with the revised statement, thereby rectifying the mistake in the Final Order.