2017 (2) TMI 1392 - AT - Central Excise

Valuation - Job-work - body built supplied by Tata Motors - Held that - Identical issue decided in the appellant own case M/s. Tata Motors Ltd. and M/s. Commercial Engineers & Body Builders (P) Ltd. Versus C.C.E., Bhopal 2016 (7) TMI 1478 - CESTAT NEW DELHI wherein the bench remanded the matter back to the adjudicating authority for reconsideration of the issue. Matter remanded back to the adjudicating authority for consideration afresh - appeal allowed by way of remand.

Summary

Issues: Duty liability on job works undertaken by body built supplied by Tata Motors and penalties imposable on Tata Motors.

In the judgment delivered by the Appellate Tribunal CESTAT NEW DELHI, the issue at hand was whether duty liability arises in relation to job works undertaken using body built supplied by Tata Motors and whether penalties are applicable to Tata Motors. The adjudicating authority had determined that a company was liable to discharge duty and that Tata Motors was required to pay a penalty under Rule 26 of the Central Excise Rules. However, it was noted that a similar issue involving the same appellant had been previously decided by the bench in a final order, where it was concluded that no penalty was warranted in that case. The Tribunal, therefore, remanded the matter back to the adjudicating authority for reconsideration, with specific directions to not impose any penalty and to recomputed the duty demand after considering certain contentions raised by the appellant regarding the assessable value for determining the duty amount. The Tribunal emphasized that the adjudicating authority should follow the directions given in the previous final order while computing the duty demand and reiterated the same directions for clarity. Ultimately, the appeals were disposed of based on the above considerations.