2016 (12) TMI 1451 - AT - Central Excise

Valuation - value of duty paid on chassis to be included in assessable value or not? - benefit of exemption N/N. 6/2003 dated 01/03/2003 and N/N. 241/86 dated 03/04/86 - Held that - there is no substantial difference between the language of two notifications and therefore, the decision of the Tribunal in the case of Rubi Coach Builders Ltd. 1998 (11) TMI 309 - CEGAT, NEW DELHI , relied upon in the impugned order and the clarification issued by CBEC vide Circular No.350/3/86-TRU dated 10/12/86 is equally applicable to the instant case - it was held in the case of Rubi Coach Builders Ltd. that duty of excise paid on chassis was excludible from the assessable value of the motor vehicle if Modvat credit was not availed on the chassis - duty of excise paid on chassis is excludible - appeal rejected - decided against Revenue.

Summary

Issues:
Interpretation of Notification No.6/2003 for exemption on assessable value of motor vehicles based on chassis duty payment.

Analysis:
The case involved the appellant, a motor vehicle manufacturer, claiming exemption under Notification No.6/2003 by deducting the value of the chassis if duty on it was already paid. The issue was whether duty paid on the chassis should be included in the assessable value for duty payment under the notification. Both the original adjudicating authority and the first appellate authority ruled in favor of the appellant, citing relevant precedents and circulars. The Commissioner (Appeals) highlighted that the duty paid on the chassis by the manufacturers should not form part of the assessable value for independent body builders availing exemption under the notification. The Tribunal upheld this decision, emphasizing that the duty paid on the chassis should be excluded from the assessable value, as per the notification and relevant case law.

The Revenue appealed the decision, arguing that the language of Notification No.241/86 was different from Notification No.6/2002, and thus, the circular issued could not be relied upon for interpreting the latter. However, the Tribunal examined both notifications and found no substantial difference in language. It concluded that the decision in a previous case and the circular issued by CBEC were equally applicable to the present case. Consequently, the appeal by the Revenue was rejected, affirming that duty paid on the chassis should not be included in the assessable value for duty payment under Notification No.6/2003.

In summary, the judgment clarified the interpretation of Notification No.6/2003 regarding the assessable value of motor vehicles manufactured by independent body builders. It established that duty paid on the chassis should be excluded from the assessable value for duty payment under the notification, in line with relevant precedents and circulars. The Tribunal's decision reaffirmed the position that the duty paid on the chassis by manufacturers should not burden independent body builders availing exemption under the notification.