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2014 (7) TMI 442 - AT - Central ExciseWaiver of pre deposit of duty - body building on the chassis cleared on payment of duty - inclusion of amount of duty paid on chassis in the value of body - inclusion of amount of freight and insurance charges - Held that - body builder is taking credit of ₹ 10,000/- paid on chassis as a special duty and there is no dispute in this regard. Hence, prima-facie, the Applicant has a strong case in this regard inasmuch as, the amount relatable to credit taken, cannot be considered as an element of cost. In respect of addition of freight and insurance to the cost of chassis at the hand of body builder, we find that the Tribunal in the case of Hyva (India) Ltd. Vs. CCEx., Bangalore reported in 2009 (10) TMI 720 - CESTAT BANGALORE , granted waiver of predeposit. We further find that in the identical case, this Tribunal in the case of Hyva (India) Ltd. (supra), has waived the duty and penalty and recovery of the same is stayed during pendency of appeals. We find that in case of M/s Tata Motors Ltd. case (2013 (6) TMI 557 - CESTAT KOLKATA) the issue was confirmation of duty against the differential value between the R.S.O (Regional Sales Office) by M/s Tata Motors and the assessable value on which the duty was paid by the body builder arrived by the body builders on costing basis. - prima facie case is in favor of assessee - Stay granted.
Issues:
Waiver of predeposit of duty and penalty under Section 11AC of the Central Excise Act, 1944 on M/s Bhalotia Auto Products Ltd., and penalties imposed on M/s Tata Motors Ltd. and M/s. V.E. Commercial Ltd. under Rule 25 and Rule 26 of the Central Excise Rules, 2002. Analysis: The case involved the waiver of predeposit of duty and penalties imposed on various parties. The Applicant, M/s. Bhalotia Auto Products Ltd., was found to have not included certain amounts in the value of body built on chassis for duty purposes. The Applicant contended that the duty portion should not be considered as they were availing credit for a specific duty paid by M/s Tata Motors Ltd. The Tribunal noted that the Applicant had not included freight and insurance charges in clearances to M/s Tata Motors Ltd. and M/s. V.E. Commercial Ltd. The Applicant relied on a Tribunal decision regarding the valuation of chassis for body built motor vehicles. The Department argued in line with lower authorities' findings and cited a previous Tribunal case directing a deposit of 25% of the duty confirmed. After hearing both sides, the Tribunal found that the Applicant had a strong case as they were availing credit for a specific duty paid by M/s Tata Motors Ltd. and M/s. V.E. Commercial Ltd. The Tribunal also considered previous cases where waiver of predeposit was granted in similar circumstances. The Tribunal noted similarities between the present case and a previous case regarding the inclusion of specific amounts in the value arrived at by body builders. Based on these findings, the Tribunal granted a full waiver of predeposit for all the Applicants and stayed the recovery of dues during the appeal process. In conclusion, the Tribunal ruled in favor of the Applicants, waiving the predeposit of duty and penalties imposed on M/s Bhalotia Auto Products Ltd., M/s Tata Motors Ltd., and M/s. V.E. Commercial Ltd. The recovery of dues was stayed during the pendency of the appeal, aligning with previous decisions and finding a prima facie case for the waiver of predeposit.
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