TaxTMI 
TaxTMI 
2019 (8) TMI 250
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....firmed with interest and penalty. 3. At the outset, the learned Advocate Shri D.H. Nadkarni for the Appellant has submitted that the Appellants are mainly engaged in the fabrication of bulkers which are mounted on duty paid chassis and such vehicles are used for transportation of cement and fly ash. Explaining the activity as alleged in the SCN, the learned Advocate for the Appellant submitted that the Appellants are manufacturing/ fabricating two types of bulkers viz. 45 Cubic Mtrs and 30 Cubic Mtrs. In the manufacture of 45 Cubic Mtrs bulkers, they purchased HR coils and cut the same into sheets on job work basis. The job worker, thereafter, fabricates the basic structure of the bulker (known as shell with base) from the HR sheets. Further, after receiving shell with base from the job worker, they installed pneumatic pipeline on the exterior of the shell. Thereafter, installed the tri-assembly on the rear side of the shell. Some other accessories like tail-lamp, safety valve, pressure guage etc installed on the shell. A king pin is welded on the bottom side of the shell which helps the shell to be hooked to the horse (i.e. chassis of the truck). Regarding the manufacturing/fabr....
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....eriod i.e. 11.02.97 to 18.08.98, SCN was issued on 02.08.1999 in connection with their other unit at Ghuggus, second SCN was also issued on 16.01.2004 for the earlier period from Feb.2003 to June 2003 pertaining to the present unit. Since the Department was fully aware of the activity undertaken by the Appellant, therefore, extended period of limitation cannot be invoked. In support, the learned Advocate referred to the judgment of Hon'ble Supreme Court in the case of Nizam Sugar Factory Vs Collr. Of C.E., A.P. - 2006 (197) ELT 465 (SC). 5. Per contra, the learned A.R. for the Revenue reiterates the findings of the learned Commissioner (Appeals). He has submitted that the Appellants are fabricating capsules of various dimensions having opening from both sides. These capsules are fitted into bulkers by way of fabrication as per design and technology for carrying the cement or fly ash which is designated as bulkers. Bulker is nothing but a 'tank' manufactured for special purpose i.e. transportation of cement or fly ash. These bulkers are fitted with nuts and bolts by mounting the same on duty paid chassis supplied by the customer. These bulkers are not permanently attached to the c....
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....Note 5 of Chapter 87, activity becomes manufacture and the resultant would be considered as a motor vehicle. The reasoning of the learned Commissioner that the shell which is mounted /fabricated on the chassis through the nuts and bolts since removable which the Appellant vehemently objected would be considered as a fabricated tank used for transportation of the cement and fly ash, in our view, devoid of merit and cannot be sustained. This Tribunal, interpreting the said activity, in T.P.S. Mrg. & Construction Co. (P) Ltd case (supra), in the context of earlier Chapter Note 3 of Chapter 87, which is similar to the present Chapter Note 5, observed as follows:- "4. We have considered the submissions of both the sides. The Punjab and Haryana High Court in the case of Darshan Singh Pavitar Singh v. U.O.I., 1988 (34) E.L.T. 631 (P&H) which was confirmed by the Division Bench of the said High Court as reported in 1990 (47) E.L.T. 532 (P&H) has held that "the person who only made or fabricated bodies for buses and trucks on the chassis supplied by their customers do not manufacture motor vehicle but they manufacture only bodies of motor vehicles and their chassis are fully covered by H....
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....nder Notification No.06/2006-CE, dt.1.3.2006, we find that the Appellant claimed the benefit under Sr.No.39 & Condition No.9 of Notification No.06/2006- CE, dt.1.3.2006, which reads as under:- Sr.No.39 :- Sr. No. Chapter Description of Goods Rate of Duty Condition No. 39 87 (i) Motor vehicles principally designed for the transport of more than six persons, excluding the driver, including station wagons; and (ii) Motor vehicles for transportation of goods (other than those specially designed for the transportation of compressed or liquefied gases), falling under Heading 8704; and (iii)three wheeled motor vehicles NIL 9 Condition No.9 :- 9. If manufactured out of chassis falling under heading 8706 on which duty of excise has been paid and no credit of duty paid on such chassis and other inputs used in the manufacture of such vehicle and has been taken under Rule 3 or Rule 13 of the CENVAT Credit Rules, 2004: (a) Who is manufacturing such vehicle on the chassis supplied by a chassis manufacturer, the ownership of which remains vested in the chassis manufacturer or the sale of the vehicle so manufactured is made by such chassis manufacturer on his ac....