2016 (8) TMI 120

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.... same activity.  Jabalpur unit is receiving chassis from Tata Motors  for fabricating bodies on the same and after availing cenvat credit of duty paid on the chassis, was clearing the full vehicle on payment of duty of excise on full value  inclusive of the value of chassis. 2.    However, during the period December, 2006 to October, 2007, as the  Jabalpur factory was having constrains, they further transferred the chassis to their present unit located at Bhopal for fabrication of the bodies on the same.   The present appellant  fabricated the bodies  and on paying the duty only on the cost of bodies, sent the same to their Jabalpur unit.   The Jabalpur unit again paid the ....

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....ential duty, there was no malafide on their part,  thus not calling for imposition of any penalty.   As regards interest, he draws our attention to the Tribunal's decision in the case of   Paper Products Ltd.   [2013 (292) ELT 389 (Tri-Ahmd)] wherein  the interest confirmed was set aside by observing that the assessee had paid the duty liability  before issuance of show cause notice and there was no malafide attached inasmuch as the entire exercise was revenue neutral.   As such, he submits that there is no reason for the Revenue to confirm interest  against the assessee and to impose penalty.  5.    Countering the above arguments of the learned advocate, lea....

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....me.     We also note that in case the appellant is held to be manufacturer and thus liable to pay duty on full value of the vehicle, he would be entitled to the benefit  of cenvat credit of duty paid on the chassis.  It is the contention of the learned advocate that in that case their duty liability would come down drastically. If interest is liable to be confirmed, same should be confirmed on the differential duty liability after allowing the benefit of cenvat credit. 7.    As regards interest, though the learned advocate has drawn our attention to the Tribunal's decision in Paper Products Ltd. as also in the case of Reliance  Industries vs. CCE  Rajkot    [2013(292) EL....

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....Tribunal's decision in the case of Reliance Industries [2013 (292) ELT 378 (Tri-Ahmd)] is not appropriate inasmuch as in the said decision, the distinction was made from the Tribunal decision  in the case of Bayer ABS Ltd. by observing  as under:- "11. As regards the case laws cited by the learned Assistant Commissioner (AR), we find that the case of Bayer ABS Limited (supra), the issue was discharge of duty liability on their own and there was a claim of Revenue neutrality as the said goods being consumed in their sister unit. Revenue neutrality claim in the case of Bayer ABS Limited was on the ground that Cenvat credit could be availed by somebody else. We find that in the case in hand the issue is eligibility of Cenvat....