2010 (9) TMI 1052

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....e of full duty on the motor vehicles by including the value of chassis. The case of the revenue is that as per the provisions of Notification 6/2002 dated 01.03.2002 as amended, vide clause (IV) of Entry (I) of serial no. 214, the duty is payable on motor vehicle under chapter heading 87.04 of the Tariff at the rate of 16% subject to the condition no. 53 of the notification which reads as under:-  "If no credit of duty paid, on the chassis falling under heading no. 87.06 has been taken under rule 3 or rule 11 of the Cenvat credit Rules, 2002." 4. The revenue is of the opinion that in view of the explanation to the Rule 3 of the Cenvat Credit Rules, where the provisions of any other rule or notification provide for grant of whole or p....

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.... the entire value of the vehicle i.e. on value inclusive of value of chassis. In other words, benefit of Notification No. 6/2002 dated 01.03.2002 has not been availed by them.  7.2. The submissions that Notification No. 6/2002 being conditional granting only partial exemption cannot be forced on them is valid. Section 5A (1A) reads as "(1A) For the removal of doubts, it is hereby declared that where an exemption under sub-section (1) in respect of any excisable goods from the whole of the duty of excise leviable thereon has been granted absolutely, the manufacturer of such excisable goods shall not pay the duty of excise on such goods" as they have not fulfilled the condition for availing the said notification. The said notification i....

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....0,000/- by not availing Notification No. 6/2002. This is basically a consequence of extra duty on the chassis alone.  8.1. When Section 5A (1A) does not compel the appellant to avail the exemption notification like 6/2002, it cannot be forced on them by interpreting cenvat credit rules as suggested by the Department.  8.2. The relevant portion of Rule 3 of the Cenvat Credit Rules as follows:-   "Rule 3. Cenvat Credit:-    (1) A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of:-     (i) any input or capital goods received in the factory of manufacturer of final product or premises of the ....