TaxTMI 
TaxTMI 
2000 (6) TMI 96
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....m under section 4 of the Central Excise Act. 2. Excise Department issued show cause notices to the appellant company calling upon them to show cause why value of tool kits cleared with passenger cars should not be added to the assessable value of the cars and duty assessed accordingly. Appellants raised many contentions against the inclusion of the value of tool kits to the assessable value of the passenger cars manufactured by them. It was contended that tool kits is not a statutory requirement for the purpose of registration of a passenger car or for running the same, tool kits does not enhance the marketability of the car; nor does it go to ensure completion of the manufacturing process of the car and that the Central Excise tariff en....
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....ules, in Tata Engineering & Locomotive Co. Ltd. v. Union of India 1994 (72) E.L.T. 525. The High Court took the view that tool kits supplied with motor vehicle chassis do not participate directly or indirectly in or in relation to the manufacture of motor vehicle chassis. Relying on the decision of the Supreme Court in the case of Union of India v. Bombay Tyre International Ltd. 1983 (14) E.L.T. 1896, their Lordships found that manufacturers of chassis were adding cost of tool kits in the assessable value of chassis because they have contributed to the value of the chassis and not for the reason that such tool kits are used in or in relation to the manufacture of chassis. Since the chassis are marketable without the help and assistance of t....
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....Act came to the conclusion that jack assemblies and other tools supplied along with motor vehicles are "inputs" as contemplated in Rule 57A of the Rules. Consequently, the manufacturers were found entitled to avail Modvat credit in respect of excise duty paid on such tool kits. 6.The decision rendered by the Larger Bench in Bajaj Auto Ltd. was followed in Collector of Central Excise, Hyderabad v. Mahindra Nissan Allwyn - 1998 (99) E.L.T. 702 by a Bench of two Members. Facts therein were that M/s. Mahindra Nissan Allwyn which were engaged in the manufacture of light commercial motor vehicles, was filing price lists paying duty on the approved prices availing Modvat credit of the duty paid on jack and tool kits. By virtue of an order of th....
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....r cars for making it marketable. Rules framed under the Motor Vehicles Act (Punjab Motor Vehicles Rules, 1989) provide for spare wheels and tools in every public service vehicles, that rule is not applicable to motor cars and motor cabs manufactured by the present appellant. No argument has been advanced on behalf of the Revenue, by the Learned Departmental Representative, that rules under Motor Vehicles Act require tool kits and jack to make the motor vehicles marketable. 9.In view of the Supreme Court's decision dismissing the S.L.P. filed against the Patna High Court decision, the decision of the Larger Bench in Bajaj Auto Ltd. cannot be treated as good law. 10.High Court of Gujarat in Amkar Engineering Works v. Superintendent of C....
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....Members was called upon to examine whether tool kits, number plate are essential item for running the auto cycles and hence their value is includible in the assessable value of the finished product. The Bench look the view that tool kits consist of a set of spanners, screw drivers etc. which are of general use and are available at any hardware shop. They are not designed for use only as tool kits with the final product. Consequently the Bench took the view that tool kits are not essential accessories of the final product and therefore their value will not be includible in the assessable value of the auto cycles. This decision was taken to the Supreme Court by the Department in Civil Appeal No. 1163 of 1990. Supreme Court dismissed that appe....