2016 (11) TMI 1531 - AT - Central Excise

Demand of differential duty - for constructing the fabricated bodies on the chassis, the assessee has sent some chassis at Mandla branch who after constructing the fabricated bodies returned to Jabalpur unit and later on, handed over to Tata Motors who had supplied the chassis - Held that - it appears that this issue was already decided by the Tribunal in assessee s case Commercial Engineers & Body Builders Co. Ltd. Versus Commissioner of Central Excise Bhopal 2016 (8) TMI 120 - CESTAT NEW DELHI , where the Tribunal has remanded the matter back to the adjudicating authority for fresh decision with the direction to decide the assessee s liability to pay the differential duty and if payable, to decide the quantum of the same after examining the aspect of availability of cenvat credit of duty paid on the chassis. Matter remanded back to the adjudicating authority for fresh decision - appeal is allowed for statistical purpose.

Summary

Issues:
1. Liability to pay differential duty on fabricated bodies constructed on chassis.
2. Availability of cenvat credit of duty paid on chassis.

Issue 1: Liability to pay differential duty on fabricated bodies constructed on chassis

The appellant, having two units at Jabalpur and Mandla, sent chassis to Mandla for constructing fabricated bodies, which were later returned to Jabalpur and handed over to Tata Motors. The Tribunal had previously remanded the matter back to the adjudicating authority to determine the liability for paying the differential duty. The Tribunal directed the authority to assess the quantum of duty after considering the availability of cenvat credit on the chassis. The counsel for the appellant informed that the Tribunal's decision was still pending before the adjudicating authority. Consequently, the Tribunal remanded the matter back to the adjudicating authority for a fresh decision, ensuring a reasonable opportunity for the appellant to be heard and allowing additional evidence as per law. Ultimately, the appeal was allowed for statistical purposes.

Issue 2: Availability of cenvat credit of duty paid on chassis

The Tribunal's decision in the appellant's appeal highlighted the importance of examining the availability of cenvat credit on the duty paid for the chassis used in constructing the fabricated bodies. The Tribunal directed the adjudicating authority to consider this aspect while determining the liability for paying the differential duty. The counsel for the appellant emphasized the need for a thorough assessment of this credit during the fresh decision-making process. The Tribunal's decision to remand the matter back to the adjudicating authority underscored the significance of evaluating the cenvat credit in relation to the duty paid on the chassis. This aspect was crucial in ensuring a fair and accurate determination of the differential duty liability concerning the fabricated bodies.

This comprehensive analysis of the judgment from the Appellate Tribunal CESTAT NEW DELHI delves into the issues of liability for paying the differential duty on fabricated bodies constructed on chassis and the availability of cenvat credit on the duty paid for the chassis. The Tribunal's decision to remand the matter back to the adjudicating authority for a fresh decision underscores the complexity and importance of these issues in ensuring a fair and just resolution.