1997 (3) TMI 559 - AT - Central Excise

Summary

Issues:
1. Assessment of excise duty on motor vehicles without allowing deductions.
2. Validity of the assessment order and the need for a refund claim.
3. Requirement of a show cause notice and personal hearing for imposing duty liability.
4. Discrepancy between the assessment based on approved classification and the provisional clearances.
5. Applicability of the judgment in the case of Samrat International regarding show cause notice.

Analysis:

1. The appeal involved the assessment of excise duty on motor vehicles by M/s. Pandiyan Roadways Corporation Ltd. The Superintendent charged duty on the entire value of the vehicles without deducting the value of the chassis, which was duty paid and bought by the appellants for bus completion purposes. The Collector of Central Excise (Appeals) held that the appellants should have filed a refund claim and that the assessment order based on approved classification could not be challenged.

2. The appellants sought a decision on the merits of the case, indicating their disagreement with the assessment order.

3. The Collector of Central Excise (Appeals) concluded that the assessment order was not a demand under Sec. 11A of the Central Excises & Salt Act. He emphasized that the order was based on existing notifications and that any refund claim should be filed with the Assistant Collector of Central Excise. The Collector's decision was based on the absence of a notification under Sec. 11C and the correctness of the duty charged by the Superintendent.

4. The Tribunal noted that the Superintendent had calculated the duty liability without allowing deductions and that the Assistant Collector had provisionally allowed clearances at a lower rate per vehicle. The Tribunal emphasized that the absence of a show cause notice before imposing extra duty liability was a mandatory requirement.

5. The Tribunal disagreed with the Collector of Central Excise (Appeals) regarding the necessity of a show cause notice and personal hearing. They highlighted that the assessment was not solely based on approved classification, as the clearances were provisionally allowed at a specific rate. Citing the judgment in the case of Samrat International, the Tribunal emphasized the importance of a show cause notice, ultimately allowing the appeal.

In conclusion, the Tribunal allowed the appeal, emphasizing the necessity of a show cause notice and personal hearing before imposing duty liability. They highlighted the discrepancy between the provisional clearances and the duty charged, ultimately ruling in favor of the appellants.