2023 (10) TMI 733 - AT - Central Excise

Tribunal Overturns Duty Demand; Confirms Body Builder as Manufacturer; Appellant Cleared of Excise Duty on Vehicles

M/s Tata Motors Limited Versus Commissioner of Central Excise, Jamshedpur

M/s Tata Motors Limited Versus Commissioner of Central Excise, Jamshedpur - TMI Issues:Valuation of motor vehicles manufactured by job worker on duty paid chassis supplied by Appellant.Summary:The appeal was filed against the Order-in-Original confirming Central Excise duty on chassis supplied to body builders for building body-built vehicles. The Appellant's submission was that they paid duty on chassis cleared to body builders and body builders paid duty on composite value. The impugned order demanded excise duty based on final price of body-built vehicles sold by Appellant, alleging incorrect discharge of duty. The Commissioner confirmed the demand citing RSOs as place of removal for vehicles. The Appellant argued that they are not manufacturers as per previous judgments and ownership transfer is not relevant for excise duty liability. They also claimed that the demand is barred by limitation. The Tribunal held that the body builder is the actual manufacturer, not the Appellant, and set aside the duty confirmed in the impugned order.Key Points:- Appellant supplied duty paid chassis to body builders for building body-built vehicles.- Appellant paid duty on chassis, body builders paid duty on composite value.- Impugned order demanded duty based on final price of vehicles sold by Appellant.- Commissioner confirmed demand citing RSOs as place of removal.- Appellant argued not being manufacturer as per previous judgments.- Ownership transfer not relevant for excise duty liability.- Demand barred by limitation.- Tribunal held body builder as actual manufacturer, set aside duty confirmed in impugned order.