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TMI Blog1995 (10) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... f evidence like balance sheet, profit and loss accounts etc. with reference to the financial position. Taking note of the facts and circumstances of the case and the evidence on record and also considering the offer made by the petitioner, we direct the petitioner to make pre-deposit of Rs. 25,00,000 (Rupees Twenty Five Lakhs) on or before 29th November, 1995 and report compliance subject to which pre-deposit of the balance amount would stand dispensed with pending appeal. 2. Smt. Nalini Chidambaram, the learned Senior Advocate appearing for the applicants pleaded that the applicants are manufacturers of 3 wheeled auto rickshaws falling under Tariff Heading 87.03 or 87.04. She pleaded that the issue that falls for consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cated out of MS sheets. 3.Painting of tabular frame, front and back body frames. 4.Differential, front fork and tyres are fitted to the tubular frame. 5.The front body and back body are also mounted over the tubular frame. 6.Sheets and upholstery (top rexin cover) are fitted. 7.Battery is fitted and electrical connections are given. 8.In the last operation, the engine is fitted, gear box mounted on the frame and connected to the differentials. She pleaded that the process of the manufacturing of 3 wheeled auto rickshaw would show that no chassis as such came into existence during the course of manufacture of 3 wheeled auto rickshaws as understood in the trade. As per Tariff Ruling 6/67 file No. 13/19/64 CX., IV, dated 17-9-196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturing process in a manner so as to avail of the benefit of Notification and all that the applicants had done was a bit of tax planning to fall within the ambit of Notification 162/86. It was put to the learned counsel that in case from the auto rickshaw the body is lifted out and which could be easily detached, what would remain, she fairly stated that it would only be a chassis. She submitted that the applicants have a prima facie good case in their favour. 3. Regarding the financial position, the applicants did not produce the balance sheet and the learned advocate mentioned that in case the Bench feels that, pre-deposit has to be made, the applicants can make a pre-deposit of Rs. 5,00,000/- stating that the applicants are only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot manufacture chassis himself, and brings it from outside for the manufacture of vehicle falling under Tariff 87.03 and 87.04 and he does not avail of the benefit of credit provided for under Rule 56A or 57A, final duty required to be paid has been prescribed at concessional rate of Rs. 525/- per vehicle as against the statutory duty of Rs. 25% provided under Central Excise schedule. Thus it is seen that the scheme of the tariff is that where integrated operations are carried out for manufacture of vehicles coming under Tariff 87.03 and 87.04, including that of chassis, duty payable would be 25%. The chassis here would be captively consumed. Chassis as it is for the auto rickshaw in terms of tariff schedule carries a rate of duty of 15%. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facturing operations in such a manner that they fit the engine at the last stage they would be entitled to pay a lower rate of duty than in cases where order of fitment is otherwise than done by the appellants is prima facie not acceptable. Prima facie, therefore, we find no force in the plea of the applicants. We observe that in case the body of the auto rickshaws which is easily removable is taken out, what remains would be chassis. It is, therefore, clear that chassis comes into existence in the hands of the appellants. We also cannot prima facie visualise a situation where a vehicle can be without a chassis. In view of above, prima facie there is no infirmity in the order of the lower authority. So far as the financial position of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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