2005 (1) TMI 438 - AT - Central Excise

Summary

Issues:
Exemption under Notification No. 5/99-C.E. for Motor Vehicles registered as "Motor Cabs" but used solely as Taxis.

Analysis:
The case involved a dispute regarding the denial of exemption under Notification No. 5/99-C.E. to two Motor Vehicles registered as "Motor Cabs" but used solely as Taxis. The appellants argued that the vehicles were indeed registered for use as Taxis and thus qualified for the exemption. The first vehicle, registered as a "M. Cab" in Bangalore, was used as a "Tourist Taxi" according to the permit issued by the Karnataka State Transport Authority. The second vehicle, registered as a "Tourist Motor Cab" in Tiruvallur, was authorized to ply on roads where Taxis operate. The appellants contended that the term "Cab" is synonymous with "Taxi" as per the Oxford Concise Dictionary.

Upon reviewing the submissions and case records, the Tribunal concluded that both Motor Vehicles in question were effectively registered for use solely as Taxis, despite being described as "Motor Cabs" in the registration certificates. The Tribunal accepted the appellants' argument that the term "Cab" is interchangeable with "Taxi," as supported by the dictionary definition. Consequently, the Tribunal set aside the lower authorities' orders denying the exemption and ruled in favor of the appellants, granting them the benefit of the exemption under Notification No. 5/99-C.E. The appeals were allowed, and the early hearing application was disposed of accordingly.