Cenvat credit and exemption eligibility in vehicle body-building claims required fresh factual verification before deciding merits.

Eligibility for exemption under Notification No. 6/2006-CE for 55 vehicles cleared to NEKRTC and others depended on whether Cenvat credit had been availed on inputs used in the relevant body-building activity. The assessee claimed separate accounts were maintained and no credit was taken for those vehicles, but the supporting statements and annexures were not examined on facts and no finding was recorded on that core question. The matter therefore required factual verification by the adjudicating authority after hearing the assessee, and the issue on merits was left open on remand.

---

---

Issues: Whether the assessee was entitled to the benefit of Notification No. 6/2006-CE dated 01/03/2006 in respect of 55 vehicles cleared to NEKRTC and others, and whether the alleged availment of Cenvat credit on inputs used in their body-building activity had been correctly established.

Analysis: The claim of the assessee was that separate accounts were maintained for inputs used in the two sets of body-building activities and that no Cenvat credit was availed for the 55 vehicles in question. The supporting statements and annexures produced before the authorities below were not examined on facts, and no finding was recorded on the core factual question whether credit had in fact been taken for those vehicles. In these circumstances, the matter required factual verification by the adjudicating authority after granting an opportunity of hearing.

Conclusion: The issue on merits was not finally determined and the matter was remanded to the adjudicating authority for fresh examination. The assessee succeeded to the extent of obtaining a remand, and the substantive question of eligibility under the exemption notification was left open.

---