2008 (6) TMI 121

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....ies on duty paid chassis received from M/s Tata Motors, the manufacturer of chassis. (b) While clearing the chassis, M/s Tata Motors have paid the applicable duty including Rs. 10,000/- additional basic excise duty leviable on chassis imposed in the Budget of 2003.  (c) The appellant received the duty paid chassis  and from August 2003, taken cenvat credit of duty paid on chassis which was @ 16% + Rs. 10,000/- per chassis along with Education cess; they also took credit of duty paid on other inputs such as MS and GI Sheets, Paint, MS Pipes etc. (d) The appellant, after body building, cleared the body built vehicle discharging duty on the entire value of the said body built vehicle including the value of chassis.  ....

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....charged duty on the entire value of the said body built vehicle including the value of chassis. The condition of the notification is that it debars only the credit relating to chassis.  (c) Even if there was partial exemption for any goods, the credit of duty paid on the inputs cannot be denied in terms of rule 3. The intention of rule 3(7) is that a person availing a notification which was subject to the condition that cenvat credit cannot be availed on the inputs, cannot cite rule 3 of Cenvat Credit Rules to claim that there was no bar for availing such credit. In the present case, the chassis has paid the duty; there is a partial exemption for body built vehicle on the condition that cenvat credit was not taken on duty paid on ch....

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....ereby declared that where an exemption under sub-section (1) in respect of any excisable goods from the whole of the duty of excise leviable thereon has been granted absolutely, the manufacturer of such excisable goods shall not pay the duty of excise on such goods as they have not fulfilled the condition for availing the said notification. The said notification is a conditional notification granting only partial exemption and, therefore, provisions of  Section 5A (1A) are not  applicable to them. 7.3. The levy of additional basic excise duty is only on the chassis and not on body built vehicle and this appears to be a conscious policy decision. If the chassis-manufacturer himself has built the body then duty was payable only a....

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....Cenvat Credit Rules as follows: "RULE  3.CENVAT credit. (1) A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of- --                     --                      --                      --                      -- &nbsp....

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....nbsp;     --                      --          (7) Notwithstanding anything contained in sub-rule (1) and sub-rule (4). --                     --                      --                      --            &nbsp....