Running gear forms part of chassis valuation for motor vehicle exemption under Notification No. 4/97-CE.

For exemption under Notification No. 4/97-CE, the Tribunal held that running gear supplied with the chassis was part of the chassis for valuation purposes. Applying its earlier decision in the assessee's own case, it reasoned that where the assessee merely carried out body building on the chassis, the notification required exclusion of the chassis value from the motor vehicle value and did not justify separate inclusion of the running gear. The running gear value was therefore not includible in the assessable value, and the matter was decided for the assessee.

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Issues: (i) Whether the value of running gear supplied along with the chassis was includible in the assessable value of the motor vehicle for availing exemption under Notification No. 4/97-CE.

Analysis: The dispute turned on whether running gear formed part of the chassis for purposes of the exemption notification. The Tribunal followed its earlier decision in the assessee's own case and the reasoning that chassis, for this exemption, includes the running gear and other essential mechanical parts. It was held that the notification requires exclusion of the chassis value from the vehicle value, and no separate inclusion of running gear was justified where the assessee had only undertaken body building on the chassis.

Conclusion: The value of running gear was not includible in the assessable value, and the issue was decided in favour of the assessee.

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