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of <h1>Tribunal ruling: Exemption granted for mounted bulkers on duty-paid chassis, but not for semi-trailor types.</h1> <h3>M/s AMCL Machinery Ltd Versus Commissioner of Customs & C. Ex.</h3> M/s AMCL Machinery Ltd Versus Commissioner of Customs & C. Ex. - TMI Issues Involved:1. Classification of bulkers fabricated and mounted on duty-paid chassis.2. Eligibility for exemption under Notification No. 6/2006-CE.3. Applicability of the extended period of limitation for demand recovery.Issue-wise Detailed Analysis:1. Classification of Bulk Fabricated and Mounted on Duty-Paid Chassis:The primary issue for determination is whether the bulkers fabricated and mounted by the Appellant on duty-paid chassis should be classified under CSH 87042319 and eligible for exemption under Sr.No.39 of Notification No.06/2006-CE. The Appellants argued that the bulkers, used for transporting cement and fly ash, are correctly classifiable under CSH 87042319 as per Chapter Note 5 of Chapter 87 of the Central Excise Tariff Act, 1985. This note states, 'building a body or fabrication or mounting or fitting of structures or equipment on the chassis falling under heading 8706 shall amount to 'manufacture' of a motor vehicle.' The Tribunal agreed with the Appellant, noting that the activity of mounting the shell on the chassis constitutes the manufacture of a motor vehicle. The Tribunal referenced the case of CCE Gaziabad Vs T.P.S. Mrg. & Construction Co. (P) Ltd, where similar activities were classified under sub-heading 8704.90. Thus, the Appellant's classification of the bulkers under CSH 87042319 was upheld.2. Eligibility for Exemption under Notification No. 6/2006-CE:The Appellants claimed the benefit of exemption under Sr.No.39 & Condition No.9 of Notification No.06/2006-CE. The condition stipulates that the vehicle must be manufactured out of chassis falling under heading 8706, on which excise duty has been paid, and no credit of duty paid on such chassis and other inputs used in the manufacture of such vehicle has been taken. The Tribunal found that the Appellant met these conditions, as they fabricated/mounted the shells on duty-paid chassis and did not avail CENVAT Credit on the inputs used. Therefore, the Appellants were deemed eligible for the exemption for the bulkers mounted on the chassis. However, the Tribunal noted that the 45 Cubic Mtrs bulkers, which are semi-trailor types, are not covered under this exemption and are dutiable.3. Applicability of the Extended Period of Limitation for Demand Recovery:The Appellants contended that the entire demand is barred by limitation, citing previous show cause notices issued for similar issues. They argued that the Department was fully aware of their activities, thus the extended period of limitation should not apply. The Tribunal, however, found that the Appellant did not disclose the manufacture of semi-trailor type bulkers, which are dutiable and not covered under the exemption. Therefore, the extended period of limitation was applicable for the recovery of duty on these semi-trailors. The Tribunal confirmed the demand, interest, and penalty for the 4 semi-trailors but set aside the demand for the 105 mounted bulkers.Conclusion:The appeal was disposed of with the Tribunal setting aside the demand for the 105 mounted bulkers classified under CSH 87042319 and confirming the demand for the 4 semi-trailors classified under Chapter 8716 of the Central Excise Tariff Act, 1985, with interest and penalty.
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