TaxTMI 
TaxTMI 
TaxTMI 
2025 (6) TMI 1352
X X X X Extracts X X X X
X X X X Extracts X X X X
....tes the seized goods under the provision of rule 25 of the Central Excise Rules, 2002 [the 2002 Rules], but, as the goods were provisionally released, redemption fine has been imposed upon the appellant. The order also confiscates the goods manufactured and cleared by the appellant without payment of duty but as the goods were cleared redemption fine has been imposed. 2. Excise Appeal No. 1456 of 2012 has also been filed by the appellant situated at Pithampur [appellant No. 2] to assail that part of the order dated 27.02.2012 that confirms the demand on the appellant with interest and penalty. 3. Excise Appeal No. 1532 of 2012 has been filed by M/s Shri Balaji Tractor House [appellant No. 3], which is a warehouse from where the goods of appellant No. 1 and appellant No. 2 are sold. It has sought the quashing of the order dated 27.02.2012 passed by the Commissioner so far as it confiscates the goods, but as they were provisionally released, redemption fine has been imposed. The order also imposes penalty upon the appellant under rule 26 of the 2002 Rules. 4. Appellant No. 1 is inter-alia, engaged in the manufacture of earth moving construction equipments namely Wheeled Tractor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uch parts being covered under Serial No. 97 of the MRP Notification dated 01.03.2006, as amended by Serial No. 108 of Notification dated 24.12.2008, are subject to MRP based assessment. Penalty was also proposed upon Appellant No. 3 in each of the aforesaid show cause notices, under section 11AC of Central Excise Act read with rule 25 of the 2002 Rules. Penalty was also imposed on Appellant No.1 and Appellant no. 2 under section 11AC of the Central Excise Act. 11. The Appellants filed their replies contesting the demand proposed in the show cause notices. 12. By a common order dated 27.2.2012, the Commissioner confirmed the entire demand of excise duty along with interest and penalty upon all the Appellants. Redemption fine was also levied on the goods found lying in the factory premises of the Appellants at the time of search. 13. It is against this order of the Commissioner that three appeals have been filed. 14. Shri B.L. Narasimhan, learned counsel for the Appellants assisted by Ms. Sukriti Das, submitted that the issue as to whether the construction equipments, namely WTLB and VC, are "Automobiles" has been answered by a Larger Bench of the Tribunal in Excise Appe....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the activity of packing/repacking of parts of the WTLB and VC would amount to manufacture under section 2 (f) (iii) of the Central Excise Act. 18. It is this precise issue that was examined and decided by a Larger Bench of the Tribunal in Action Construction Equipment The relevant portion of the interim order dated 06.06.2023 passed by the Larger Bench of the Tribunal is reproduced below :- "A Division Bench of the Regional Bench of the Tribunal at Chandigarh, while hearing Excise Appeal No's. 791 of 2012, 792 of 2012 and 793 of 2012 filed by M/s. Action Construction Equipment Ltd., P. K. Bansal, and Vijay Agarwal respectively, for the reasons stated in the order dated 01.08.2016, expressed disagreement with the views expressed earlier by another Division Bench of the Regional Bench of the Tribunal at Mumbai on 08.11.2013 in Commissioner of Central Excise, Pune-I vs. JCB India Ltd. [2014 (312) E.L.T. 593 (Tri. - Mum.)] (Excise Appeal No. 173 of the 2011), and, therefore, framed the following issues to be decided by a Larger Bench of the Tribunal: "(i) How to define expression "automobiles' when it is not defined in Central Excise Act/Rules or any Notification issu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....goods described as earth moving equipments/ machines would amount to manufacture under section 2 (f) (iii) of the Central Excise Act. 33. Learned special counsel appearing for the department, however, contended that the amendment made to the Third Schedule by addition of serial no. 100A was merely clarificatory in nature and would be applicable even prior to 29.04.2010. According to the learned special counsel, the intention of the legislature was to rephrase the coverage by linking the final products with tariff entries, instead of the generic description i.e. "automobiles'. 34. Learned senior counsel appearing for the appellant, however, submitted that serial no. 100A of the Third Schedule was inserted w.e.f. 29.04.2010 and it cannot be given effect to for any period even prior to 29.04.2010. Elaborating this submission, learned senior counsel pointed out that when serial no. 100A was specifically made applicable retrospectively w.e.f. 29.04.2010, it cannot by any interpretation be made effective from any day even prior to 29.04.2010. ...... 42. The amendment made in the Third Schedule by section 73 of the Finance Act, 2011, that came into effect on 01.04.2011, seeks ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rom any date prior to this date. .... 89. What follows from the aforesaid discussion is that the earth moving machines involved in the present appeals are not "automobiles'. It would not be appropriate to borrow the meaning of the word "automobile' or "motor vehicle' under the Motor Vehicles Act, 1988 or the Air (Prevention and Control of Pollution) Act, 1981 merely because the word "automobile' has not been defined in the Central Excise Act, Central Excise Tariff Act or the Notifications issued by the Central Government. In such a situation, it would be appropriate to refer to the dictionaries to find out a general sense in which the word "automobile' is understood in common parlance. Automobiles, therefore, are conveyances for transportation of passengers and goods on road as also been understood by the department in the various Circulars issued from time to time. Serial no. 100A inserted in the Third Schedule w.e.f. 29.04.2010 is prospective and likewise serial no. 109 inserted in notification no. 49/2008 by notification no. 19/2010 dated 29.04.2010 issued under section 4A of the Central Excise Act, is prospective in nature. 90. The reference made to the Larger Bench is....