2008 (1) TMI 922 - SC - Central Excise

Summary

Issues involved:
The issue in this case is whether the chassis fitted with engines manufactured and cleared by the appellants for further manufacture of buses are eligible for the concessional rate of excise duty under exemption Notification No.462/86-CE dated 9.12.1986.

Judgment Details:

The Department of Excise and Customs issued a general clarification stating that the chassis for Light Motor Vehicles (LCVs) is included in motor vehicles and entitled to the concessional rate of excise duty under Notification No. 463/86-CE. M/s. Ashok Leyland Limited sought clarification on whether motor vehicles include the chassis of LCVs, which was confirmed by the Department of Industrial Development. However, the Tribunal did not provide any finding on these clarifications.

Mr. Shetty, representing the Department, sought time to obtain clarification from the Central Board of Excise & Customs regarding the applicability of the clarification issued under Notification No. 463/86-CE to the exemption Notification No. 462/86-CE. Despite no instructions being received, Mr. Shetty conceded that the Tribunal did not record any finding on the issue raised before them.

The Supreme Court found that the point in issue was raised before the Tribunal but not addressed in their order. Mr. Shetty requested the impugned order to be set aside and the case to be remitted to the Tribunal for a fresh decision on all points raised. The Court ordered accordingly, directing the Tribunal to record findings on the raised points, including the applicability of the Department's clarification to both relevant notifications.

As a result, the appeals were allowed, and in light of the decision in C.A. Nos. 1907-1909 of 2002, subsequent appeals (C.A. Nos. 5092-5094 of 2002) were also allowed, considering the re-computation of duty and penalty dependent on the applicability of the Department's clarification to the relevant notifications.