TaxTMI 
TaxTMI 
2026 (7) TMI 995
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....llants are engaged in the manufacture of tractor parts; they are also registered for providing 'Business Auxiliary Service'. An investigation was conducted by the Revenue which indicated that the appellant was receiving cast articles from principal manufacturers like M/s Mahindra & Mahindra, M/s Action Construction Equipment Ltd., M/s G N A Dura Parts, M/s International Tractors Ltd. etc. and after doing necessary job-work i.e. machining, milling, drilling, boring and chamfering etc., sent back the goods to principal manufacturers. The appellants were discharging service tax on the job charged received by them. claimed exemption, on the gear-box housing/ lift housing (rear cover) received from the appellants after job-work, under Notificati....
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....e parts, should be used in the factory of production and should be used in the manufacture of tractors; all the three conditions have been satisfied and therefore, exemption cannot be denied; he relies on the decision of the Tribunal in the case of Mohindra Cranks - Final Order No.61415/2025 dated 24.09.2025 and the case of M/s Lohia Sheets Products - 2008 (224) ELT 349 (SC). He further submits that the appellant is registered with the Department for payment of service tax and has paid service tax on the job charges received by them for the machining of castings; they have been regularly filing Returns; Department has not raised any objection; the appellant has not suppressed any material fact with intent to evade payment of duty and theref....
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....hat scrap would be entitled to exemption which has been generated in the factory of production is, therefore, unwarranted and unsustainable. The word, 'within' occurs after the word, 'used'. The assessing authority as well as the Tribunal have arrived at the finding that only that scrap/waste of copper would be entitled to the exemption which had been generated in the same factory because of the word, 'within' used in the heading 74.04. According to them, the word, 'within' pre-supposes that the copper waste and scrap was generated in the same factory. We are unable to read the entry in the manner as suggested by the Revenue. 16. The test laid down by the Tribunal that the benefit of the notification/tariff heading would be admissi....
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....intention behind the grant of exemption under the notification was to prevent the duty being paid at two stages. In the present case, an amount equivalent to the excise duty had been paid by the appellants at the time of import on the waste and scrap. If the benefit of the notification is not given to the appellants it would mean double payment of duty which goes contrary to the law laid down by the decision of the Constitution Bench of this Court in the case of Hyderabad Industries Ltd. (supra). This Court in the said judgment held as under : "10. Section 3(1) of the Customs Tariff Act, 1975 provides for levy of an additional duty. The duty is, in other words, in addition to the customs duty leviable under Section 12 of the Custom....
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....a. For the purpose of attracting additional duty under Section 3 on the import of a manufactured or produced article the actual manufacture or production of a like article in India is not necessary. As observed by this Court in Thermax Private Limited v. Collector of Customs, Bombay [1992 (61) E.L.T. 352 (S.C.) = [1992] 4 SCC 440] at page 452-453 that Section 3(1) of the Customs Tariff Act "specifically mandates that the CVD will be equal to the excise duty for the time being leviable on a like article if produced or manufactured in India. In other words, we have to forget that the goods are imported, imagine that the importer had manufactured the goods in India and determine the amount of excise duty that he would have been called upon to ....