Exemption notification for goods transport vehicles applies where chassis duty conditions and input credit restrictions are satisfied.

The amended exemption under Notification No. 162/86, as modified by Notification No. 89/90 dated 2-3-1990, applied to motor vehicles used for transport of goods where no credit of duty on the chassis and other inputs had been availed and the vehicle was manufactured from a chassis on which the specified excise duty had been paid. Compliance with these conditions was not disputed by the department, so the statutory requirements for the nil rate of duty were satisfied on the record. The exemption benefit was therefore available to the appellants.

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Issues: Whether the appellants were entitled to the benefit of Notification No. 162/86 as amended by Notification No. 89/90 dated 2-3-1990 for motor vehicles used for transport of goods.

Analysis: The conditions of the amended notification required that no credit of duty paid on the chassis and other inputs should have been availed and that the vehicle be manufactured out of a chassis on which the specified excise duty had been paid. The department did not dispute compliance with these conditions. The entitlement to the nil rate of duty therefore depended on satisfaction of the notification requirements, which was established on the record.

Conclusion: The benefit of the exemption notification was available to the appellants.

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