2019 (1) TMI 427

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....the department that CHEP had been employed only to deliver the appellant's finished goods i.e. various automobile parts to their customer situated at various places. Accordingly proceedings were initiated against the appellants proposing denial of the above mentioned credit amount with interest thereon and also imposition of penalty under various provisions of law. In the first round of adjudication, original authority confirmed the said proposals in the SCN which, on appeal, were upheld by the Commissioner (Appeals). The appellants had then filed appeal E/41590/2017-SM before the Tribunal which culminated in Final Order No.42760/2017 dt. 02.11.2017. The said order took note of the fact that allegation raised in the SCN is that credit has b....

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....ve the finished goods of the Appellant and transport the same to the Appellant's customers. ii) The only clause in the agreement dealing with transportation is clause 5, viz., the clause provides that the cost of transporting the packing materials between CHEP premises and the Appellant's premises is included in the hire charges. This clause cannot be construed to be transportation of Appellant's finished goods. iii) The Appellant engaged independent transporters to transport their finished goods, packed in the equipment supplied by CHEP, which goes to prove that CHEP was not transporting the finished goods. iv) The O-I-A, in para 7, admits this factual position as follows : "..the Schedule 1A at point 5 clearly specifies the in....

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.... onwards of the appeal book, it is seen that the agreement is called "Equipment Supply Agreement". In the recital portion in second page of the agreement, it is indicated that appellant "wishes to hire Equipment from CHEP for use in the Company's business on the terms of this Agreement". Further, in Schedule IB, the equipments hired have been indicated as "FLC - 48, FLC Lid - 13048, Insert LucTML and FLC Separator". The intended purpose of the equipment has also been given in the same schedule as "For the movement of Automotive Components in FLC, FLC Lids and Inserts between Lucas TVS Ltd. and Tata Motors Ltd. Pune, BIC Logistics Ventures Ld., TVS Logistics Services Ltd., Pune, Lucas TVS Ltd., Chakan. Further in page 8 of the agreement unde....