2017 (2) TMI 425 - AT - Central Excise

Valuation - fabrication and mounting of LPG tanker on the chassis - inclusion of the value of running gear - The contention of the department is that only the value of chassis is excluded from total value of the motor vehicle and not the value of the running gear. - Held that - the identical issue has been considered by this Tribunal in the appellant s own case Ganesh Chandra Ghosh 2012 (5) TMI 381 - CESTAT, MUMBAI where it was held that the value of running gear should not be included in the assessable value of the motor vehicle, in terms of N/N. 4/97-CE - the value of running gear is not includible in the value of motor vehicle for the reason that the running gear is part of chassis - appeal allowed - decided in favor of appellant.

Summary

Issues:
Interpretation of Notification No. 4/97-CE regarding exclusion of chassis value from assessable value for duty calculation.

Analysis:
The case involved a dispute where the appellant, engaged in fabricating and mounting LPG tankers on customer-supplied chassis, claimed exemption under Notification No. 4/97-CE, excluding the value of the chassis from duty calculation. However, the department contended that only the chassis value, not the running gear, should be excluded. The Commissioner (Appeals) rejected the appellant's appeal, leading to the current appeal before the Tribunal.

The appellant argued that the running gear is part of the chassis, hence its value should also be deducted. Citing various judgments, including a previous decision in the appellant's favor, the appellant emphasized that the running gear is integral to the chassis and should not be included in the assessable value of the motor vehicle for duty calculation.

On the contrary, the Revenue contended that the running gear is distinct from the chassis and should be included in the assessable value. The Tribunal analyzed the issue in light of previous decisions, notably the case of Fabtech Engineers, and concluded that the running gear should not be considered part of the assessable value based on the definition of chassis as the frame plus running gear.

Referring to technical literature and previous judgments, the Tribunal upheld the appellant's argument, stating that the running gear is indeed part of the chassis. Relying on the precedent set in the appellant's previous case, the Tribunal held that the value of the running gear should not be included in the assessable value of the motor vehicle, ultimately allowing the appeals and setting aside the impugned orders.

In conclusion, the Tribunal's decision was based on a comprehensive analysis of the definition of chassis, considering the running gear as an integral part. The judgment reaffirmed the exclusion of the running gear value from the assessable value for duty calculation, aligning with the principles established in previous cases and the interpretation of Notification No. 4/97-CE.