2001 (6) TMI 459

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....chassis for various types of vehicles which are supplied to the independent body builders to build the body on the chassis and thereafter the complete bus/vehicle is sold by them; that Notification No. 462/86-C.E. provides concessional rate of duty for fuel efficient light commercial motor vehicles of payload not exceeding 4,000 kilograms and falling within Chapter 87 of the Central Excise Tariff; that the applicants had sent the base models of the chassis for light commercial vehicles with the standard cab and body and got the same tested for fuel efficient and payload etc., by the Vehicle Research & Development Establishment, Ahmednagar; that based on the report furnished by the Vehicle Research & Development Establishment, the Ministry o....

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....987 clarified that the concessional rate of duty under Notification No. 463/86 is applicable also to the chassis for the LCVs specified in the said Notification; that earlier also a show cause notice dated 29-8-1987 was issued to them on the same ground and the Assistant Collector of Central Excise, Jalandhar allowed the benefit of Notification to chassis and dropped the proceedings in the show cause notice and no appeal had been filed against this order; that Ministry of Industry also under letter dated 18-5-1987 has clarified to M/s. Ashok Leyland Ltd. that the fuel efficiency certificate of the model tested is valid for all versions of that model irrespective of fitment of cab, load, body etc., Finally he submitted that the condition sti....

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....l motor vehicles which may fall under any other Chapters of the Central Excise Tariff. Finally, he submitted that the tests are conducted with reference to engine and payload and it is not necessary to build body on the chassis for the purpose of conducting tests; that conducting of test also does not mean that the chassis has been light commercial vehicle unless and until the body is fabricated on the same. In reply, the ld. Counsel mentioned that in Hindustan Motors (supra) case, the Tribunal was not called upon to decide the issue whether the chassis is motor vehicle or not; that the issue involved therein was whether "drive away chassis" will be classifiable under Headings 87.03 as motor vehicle designed for transport of persons or unde....