2017 (8) TMI 1215

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....ubes/flaps under concessional rate of duty in terms of SI.No.81 of notification 6/2002-CE dated 1.3.2002. The said notification exempts tyres/tubes/flaps from payment of Special Excise Duty (SED) if the said tyres/tubes/flaps are used in the manufacture of motor vehicles. It was alleged that some motor vehicles, after clearance from the factory are sold to the ultimate customers through Regional Sales Offices (RSO)/Depots of M/s. Ashok Leyland Ltd without the seventh tyre. The said seventh tyres get retained at the RSOs/depots. Therefore such seventh tyre cannot be said to be used in the manufacture of excisable goods in terms of notification 6/2002-CE dated 01.03.2002 rendering them ineligible for the exemption and hence a show caused noti....

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.... terms of the Notification No.6/2002-CE dt. 1.3.2002 (Sl.No.81 and Condition No.5). The appellant had undertaken to use such goods in the manufacture of motor vehicles. The Motor Vehicle Act specifically requires motor vehicles to be cleared with seven tyres. Even though the motor vehicles at the time of clearance from the factory had seven tyres, at the point of sale to the customer from the depot, had only six tyres. Consequently, he argued that duty demand is justified since conditions of the notification have been breached by the appellant. 5. The Bench called upon the learned advocate of the appellant to explain why the seventh tyre was removed at the time of sale of chassis from the depot even though Motor Vehicles Act requires mot....