2014 (12) TMI 946

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....kers/Trailers/Tanks fitted on trailers attached to a prime mover, commonly known as horse, the chassis of which is short (mainly consisting of the driver's cabin and with a higher engine capacity) and supplied by the customers, as falling under Chapter sub-heading 8707 90 00 of CETA, 1985. Accordingly, he has confirmed a duty demand of Rs. 1,32,94,638/- along with interest thereon. He has also imposed an equivalent amount of penalty apart from a penalty of Rs. 10 lakhs on the Managing Director of the appellant firm and a penalty of Rs. 25 lakhs under Rule 25 of the Central Excise Rules, 2002. Aggrieved of the same, the appellants are before us. 2. The learned Counsel for the appellant, M/s. Meher Trailers Pvt. Ltd. submits that they a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....chassis, which is manufactured by the appellant. The appellant is not availing any Cenvat Credit of the duty paid on the chassis or on other inputs used in the manufacture. As per Note 5 to Chapter 87, "All goods manufactured in a factory and used within the same factory for building or fabrication or mounting or fitting of structure or equipment on a chassis falling under Heading 8706 shall amount to manufacture of a motor vehicle". In terms of the said chapter note, the appellant clears a motor vehicle falling under 8704 for transport of goods. Therefore, the benefit under Serial No. 39 of the Notification 06/2006 would be available. The learned Counsel further points out that under Serial No. 87, all goods manufactured in a factory and u....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Note 5 to the Chapter 87 creates a fiction whereby building a body or fabrication or mounting or fitting of a structure or equipment on a chassis, falling under Heading 8706, shall amount to "manufacture" of a motor vehicle. In terms of the legal fiction, since the appellant is mounting or fitting bulkers on the chassis falling under Chapter 8706, he is deemed as manufacturer of motor vehicle and since the said vehicle is used for transportation of goods, he is a manufacturer motor vehicle falling under 8704. Vide serial No. 39 of the table annexed to Notification No. 6/2006 motor vehicles for the transport of goods falling under 8704 is exempt from excise duty subject to condition No. 9 which stipulates that the manufacturer does not avai....