2002 (10) TMI 105

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....purpose motor vehicle'. These special purpose motor vehicles are used in the airports for various purposes like carrying the staircase to the aircraft or for transporting the baggage into the hold of the airport or for tansporting beverages and food items to the aircraft. At the relevant period, the Tariff Items read as follows : Heading No. Sub-heading No. Description of goods Rate of duty   1 2 3 4 87.01 8701.00 Tractors (other than tractors of heading No. 87.09) 15% 87.02 8702.00 Public transport type passenger motor vehicles 25% 87.03 8703.00 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading No. 87.02), in....

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....Central Excises, dated the 10th February, 1986, the Central Government hereby exempts the goods specified in column (3) of the Table hereto annexed and falling under heading Nos. of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), specified in the corresponding entry in column (2) of the said Table, from so much of the duty of excise leviable thereon which is specified in the said Schedule as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table, subject to the conditions, if any, laid down in the corresponding entry in column (5) thereof. THE TABLE Sl. No. Heading No. Description of goods Rate Conditions xxx     xxx x....

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....as not been paid on the body the appellants are not entitled to the exemption of the notification. The appellants have filed this appeal challenging this majority view of the Technical Members. 6. The appellants are admittedly manufacturing "special purpose motor vehicles". A special purpose motor vehicle admittedly falls under Tariff Item No. 87.05. The other Tariff Items deal with "Tractors", "public transport vehicles", "motor cars", etc. Tariff Item No. 87.06 deals with the "motor chassis fitted with engines, whether or not with cab." Tariff Item No. 87.07 deals with "bodies (including a cab)". Each of these Tariff Items is dealing with a separate class. A special purpose motor vehicle or a transport vehicle or a motor car, would nec....

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.... paid on the chassis. Excise duty has also been paid on all the inputs used in the manufacture of this vehicle. We are unable to accept the reasoning in the impugned order that term 'equipment used' in the notification refers to the final body manufactured by the appellants. We find it rather strange that the Technical Members seek to justify such a reasoning on the ground that there is a separate Tariff Item No. 87.07. It was nobody's claim that the appellants' special purpose motor vehicle falls under Tariff Item No. 87.07. As stated above, Tariff Item No. 87.07 would only apply if a body was being sold separately by itself. The term 'equipment' used in the notification necessarily refers to the material and the inputs which have gone int....