Exemption for body-built chassis and clubbing of clearances required fresh factual scrutiny in re-adjudication.

Exemption under Notification No. 162/86-CE for vehicles or body-built chassis falling under headings 8701, 8702 or 8704 depended on whether duty had already been paid on the chassis and whether the FRP body-building activity brought the goods within the relevant chapter note and exemption entry. The record was insufficient for a final finding on the duty status of the chassis, the inputs received, and the output cleared from the premises, so those matters required re-examination by the adjudicating authority. The same factual scrutiny would also determine whether clubbing of clearances across connected units was warranted. The matter was remanded for fresh adjudication with a fair opportunity to adduce evidence.

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Issues: Whether the exemption under Notification No. 162/86-CE dated 01.03.1986 was available to vehicles/body-built chassis falling under headings 8701, 8702 or 8704, and whether the clearances of the connected units required clubbing on the facts to be re-examined.

Analysis: The dispute turned on whether the chassis received at the appellant's premises had already suffered duty and whether the FRP body-building activity resulted in goods covered by the relevant chapter note and exemption entry. The record did not permit a final finding on whether duty had been paid on the chassis, what inputs were received, or what output was cleared from the premises. Those factual questions required scrutiny of the evidence by the adjudicating authority. The same factual determination would also govern whether clubbing of clearances across the connected appeals was warranted. The appellant was entitled to a fair opportunity to lead evidence in re-adjudication.

Conclusion: The matter was sent back for fresh adjudication on the specified factual issues, including the availability of exemption and the question of clubbing of clearances.

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