2020 (5) TMI 448 - AT - Central Excise

Supply of bus chassis to Delhi Metro Railway Corporation (DMRC) - benefit of N/N. 6/2006-CE dated 01.03.2006 - HELD THAT - The Hon ble High Court in M/S. AZAD COACH PVT. LTD. VERSUS DELHI METRO RAIL CORPORATION LTD. ANR 2019 (4) TMI 1863 - DELHI HIGH COURT and Supreme Court in M/S. AZAD COACH PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE JAIPUR 2019 (12) TMI 1303 - SC ORDER have directed that as the matter relating to valuation for the levy of duty on such bus supplied to the appellant by Tata Motors and finally to DMRC through Tata Motors, the appellant is also entitled for similar exemption under Notification No. 6/2006. Accordingly, the Hon ble High Court read with order of Hon ble Supreme Court referred to in above have directed this Tribunal for re-quantification of the value of duty payable in the light of exemption now available for the transaction under dispute. The final order stands modified and the matter is remanded to the original adjudicating authority for re-quantification of duty liability considering the exemption now available to the appellant as per exemption Notification No. 06/2006 CE. - appeal allowed by way of remand.

Summary

Issues:
Exemption of Central Excise duty for supply of bus chassis to Delhi Metro Railway Corporation (DMRC) under Notification No. 6/2006-CE.

Analysis:
The judgment pertains to applications filed under the order of the Honorable Supreme Court and the Honorable Delhi High Court regarding the exemption of Central Excise duty granted to a fabricator of body on chassis supplied by Tata Motors for supply to DMRC. The appellant was directed by the courts to approach the Tribunal for re-quantification of the duty payable in light of the exemption available under Notification No. 6/2006. The appellant was found entitled to similar exemption as held by the Tribunal previously.

The Honorable High Court and Supreme Court emphasized the need for re-quantification of the duty liability for the transaction under dispute. In response to three miscellaneous applications filed, the Tribunal allowed them, directing the learned counsel to make necessary changes in the Memo of appeal and add the names of additional respondents as per the directions of the Honorable High Court. The Final Order of the Tribunal dated 27.09.2016 was modified, and the matter was remanded to the original adjudicating authority for re-quantification of duty liability considering the exemption under Notification No. 6/2006 CE. The appellant was granted liberty to approach the concerned adjudicating authority for re-quantification.

Overall, the Tribunal allowed all miscellaneous applications, modified the final order, and allowed the appeal by way of remand. The judgment highlights the importance of considering exemptions and re-quantifying duty liability in accordance with the applicable notifications and court directives.