2003 (12) TMI 537 - AT - Central Excise

Summary

Issues: Rectification of mistake in Tribunal's Final Order regarding excise duty on vehicles brought back for repair and re-export.

In this case, an application was filed by M/s. Maruti Udyog Ltd. seeking rectification of a mistake in the Tribunal's Final Order. The appellant argued that no excise duty is payable on vehicles brought back to the factory for repair and re-exported under bond. The appellant relied on the absence of stipulations in Rule 173M of the Central Excise Rules, unlike Rule 173H, regarding repair activities not amounting to manufacture. The appellant cited precedents to support the argument that the Tribunal has the power to recall an order with a patent error causing prejudice. On the other hand, the Department argued that the processes undertaken by the appellant amount to the manufacture of a new motor vehicle, not repair or reconditioning. The Tribunal had remanded the matter to the Commissioner for re-computing the duty liability, considering Modvat credit and duty paid on components manufactured and consumed internally. The Final Order mentioned that the appellant could claim the benefit of Rule 173L and 173M of the Central Excise Rules before the proper Authority, which would take necessary action in accordance with the law.

The Tribunal considered both arguments and observed that the processes undertaken by the appellant amounted to the manufacture of a new motor vehicle, not repair or reconditioning. The Tribunal directed the matter to be remanded to the Commissioner for re-computing the duty liability. The Final Order also allowed the appellant to claim the benefit of Rule 173M before the proper Authority for necessary action in accordance with the law. The application for rectification of the mistake in the Final Order was disposed of with these observations, granting the appellant the liberty to claim benefits under the relevant Central Excise Rules before the proper Authority.