2004 (1) TMI 626 - AT - Central Excise

Summary

Issues:
1. Eligibility of benefit under Notification No. 70/77 for a fork lift truck supplied to the Indian Navy.
2. Requirement to pay duty on parts used for assembling the fork lift truck.
3. Clarity on the determination of duties on parts demanded in the Show Cause Notice.

Analysis:

1. The appellants cleared a fork lift truck without payment of duty, claiming benefits under Notification No. 70/77. A Show Cause Notice demanded duty on parts used for assembling the fork lift truck under Notification No. 217/86. The lower authority ruled the benefit under Notification No. 70/77 was not eligible as the fork lift was not classified as "stores." The CCE (Appeals) upheld this decision, denying the benefit and confirming the duty amounts in the Show Cause Notice.

2. The Tribunal considered whether the benefit under Notification No. 70/77 for the fork lift was unavailable, necessitating duty payment, which in turn would make the parts eligible for benefits under Notification No. 217/86. However, the Tribunal noted a lack of clarity in the reason for demanding duties on the parts in the Show Cause Notice. Consequently, the Tribunal decided to set aside the order and remit the case back to the original authority for a re-hearing. The original authority was instructed to consider submissions and issue an order addressing the issues raised in the notice.

3. Ultimately, the appeal was allowed on the grounds of remand, directing a re-evaluation of the case based on the issues highlighted. The Tribunal emphasized the need for a clearer assessment and decision regarding the duty on parts and the eligibility of benefits under the respective notifications. The case was to be reconsidered to ensure a fair and thorough examination of the matter, in line with the legal provisions and notifications cited.