AI Drafter 
TaxTMI 
TaxTMI 
2016 (10) TMI 473
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....The is one spare parts Division for Tractor parts which has central excise registration and spare parts of tractors after repacking for retail sale are cleared on payment of duty. The other spare parts Division is for spare parts of WTLB and Hydra Crane for which the appellant hand not taken any central excise registration. The dispute is in respect of excisability of spare parts of WTLB and Hydra Crane, which have been repacked for retails sales. There is no dispute that the parts of WTLB and Hydra Cranes are covered by heading no.8431, which covers "parts suitable for use solely or principally with the machinery of heading no.8425 to 8430". The period of dispute in this case is from June, 2006 to June, 2010. Section 2 (f)(iii) of the Central Excise Act, 1944, states that in respect of the good listed in Schedule III to the Central Excise Act, 1944, packing or re-packing of goods in a unit container, or labelling or relabelling of containers including declaration or alteration of retail sale price on its or adoption of any other treatment on the goods to render the same marketable to the consumer, amounts to manufacture. During the period till 28.4.2010, SI.No.100 of the third Sch....
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....entry no. 100 of the 3^rd Schedule to Central Excise Act, 1944, as it stood during period prior to 29.4.10, the Board had clarified that to interpret the term 'automobile', the definition of this term as given in Automobile Cess rules, may be adopt4ed. In circular dated 11.07.90, the Board had clarified that Hydraulic excavator are not 'automobile'. However, this plea of the appellant was not accepted by the Commissioner, who vide order-in-original dated 9.1.2012 held that re-packing of parts of WTLB and Hydra Crane for their sale as spares parts would amount to manufacture under Section 2(f)(iii) of the Central Excise Act, 1944 and would accordingly attract duty. He accordingly confirmed the total duty demand of Rs. 6,07,44,253/- along with interest. Besides this, commissioner also imposed penalty of Rs. 6,07,44,253/- on the appellant company under Section 11 AC of the Central Excise Act, 1944. He also imposed penalty of Rs.One Crore and Rs. 50 Lakhs on Shri Vijay Aggarwal and Shri P.K. Bansal respectively under Rule 6(1) of the Central Excise rule, 2002. 2. Shri B.L. Narshimhan, learned Counsel for the appellants pleaded that there is no dispute about the fact that WTLB, and H....
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....0, the entry no.100 of the third schedule was substituted by two entries in Entry No.100 and 100 and while Entry No.100 covers "parts, components and assemblies of the vehicles (including chassis fitted with engines) falling under chapter 87 excluding the vehicles falling under Heading No. 8712.8713.8715 and 8716", the S.No.100a covers "parts, components and assemblies of the goods falling under Tariff Item No.84264100, 8427,8429 and 843010", that this amendment, in absence of any specific provision regarding its retrospective applicability, is inapplicable for the period prior to 29.04.2010. that from this amendment also, it is clear that during the period prior to 29.04.2010, the term "parts, components and assemblies of "Automobiles" would not cover the parts, components and assemblies of earth moving/construction machinery falling under Heading No.84.31, that the Commissioner has not given any finding as to how the Board's Circular mentioned the above would not be applicable, that even if the departments' plea that the re-packing of the goods, in question, for retail sale amount to, manufacture and would attract central excise duty, is accepted, the appellant would be eli....
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....ote that all the items in question viz. Loader, Backhoe Loader and Road roller are self-propelled, work with internal combustion engine using fuel such as diesel, have four wheels and are rubber tyred (road roller may have two rubber tyres and one roller, or only rollers). These can move on roads like other motor vehicles. These move also on roads. Thus these have all the characteristics of motor vehicles. In addition, these items have attachments which enables to execute and move earth, mud, etc., from one place to another. In case of road rollers, it helps in compacting and setting the road due to vibrating techniques in compaction jobs. 17.2 We also note that these items require registration under Motor Vehicles Act, 1988. We also note that before permitting any motor vehicle on the roads, motors Vehicles Act requires the vehicles to be examined/tested by specified institutions regarding suitability to ply on road, etc. and based upon the appropriate certification, motor vehicles are allowed on the road and registration under Motor Vehicles Act is granted thereafter only. In the present case, appellant had approached the Automotive Research Association of India, Pune wh....
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....ase, but we do not agree with the said proposition in the light of the decision of the Hon'ble Supreme court in the case of MSCO Pvt. Ltd. vs Union of India & Ors., 1985 (19) ELT 15 (SC, wherein the Hon'ble Apex Court has observed as under : "4. The expression 'industry' has many meanings. It means 'skill', Ingenuity', 'dexterity', 'diligence', 'systematic word or labour', 'habitual employment in the productive arts', 'manufacturing establishment' etc. but while construing a word which occurs in a statute or a statutory instrument in the absence of any definition in that very document it must be given the same meaning which it receives in ordinary parlance or understood in the sense in which people conversant with the subject matter of the statute or statutory instrument understand it. It is hazardous to interpret a word in accordance with its definition in another statute or statutory instrument and more so when such statute or statutory instrument is not dealing with any cognate subject. Craies on Statute Law (6^th Edn.) says thus at page 164 : "In construing a word in an Act caution is necessary in adopting the meaning ascribed to the word in other Act. "....
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....ionary gives the meaning of 'automobiles' as 'a motor car'; The American Heritage Dictionary gives the meaning of 'automobiles' as 'a self propelled passenger vehicle. Further, the Cambridge International Dictionary of English defines 'automobiles' as 'a car'. So, in general expression, the 'automobiles' means 'a car or goods carrier'. 8. In the case of JCB India Ltd. (supra), this Tribunal has over looked the settled position of law by the Hon'ble Supreme Court, as discussed hereinabove. This Tribunal has committed an error while adopting the meaning of 'automobiles' as given in Air (Prevention and Control of Pollution) Act, 1981. Further, it has also committed an error in ignoring the dictionary meaning of 'automobiles' when various dictionaries have given the uniform meaning of the expression 'automobiles' as 'passenger car or goods carrier'. In these circumstances, we are not in agreement with the said decision of this Tribunal on this issue. 9. Further, the contention of the appellants is that, there was an amendment in 3^rd Schedule of the Central Excise Act, 1944 by finance Act, 2011 through Notification No. 11/2011 Dated 24.03.2011 giving effect of demand of dut....