9911796707
TMI Blog2001 (3) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... ants undertake fabrication, mounting and fitment of body structure/equipments etc. on duty paid chassis for motor vehicles: that they claimed exemption under Notification No. 162/86-C.E., dated 1-3-86; that in the Trade Notice No. 29(MP) General (22)/1986 it was clarified by the Bombay Collectorate that Notification No. 242/86-C.E. amends Notification No. 162/86-C.E. so as to exempt all types of Special Purpose Motor Vehicles covered under Heading 87.05 of the Schedule to the Central Excise Tariff Act and duty is required to be paid in respect of equipment, which are fitted as machines for special purposes for which vehicles are manufactured; that the Appellants, under their letter dated 25-8-1986, informed the Assistant Commissioner that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pments such as Water Tank, Foam Tank, Water monitors, foam monitors, foam makers, hydrants, portable fire pump and lockers. 3. The learned Senior Counsel submitted that as per Bombay Collectorate Trade Notice, the equipment shall only relate to items which are fitted as machines on the chassis; that this means that such item independently should be a machine before being mounted or fitted on the special purpose Motor Vehicle; that the process of fabrication of the body of the Vehicle or fabrication of any other item, which by its nature and character is a pure fabrication, will not be covered by the term, equipment, machine; that Water tank for storage and disbursal of Water, foam tanks for disbursal of foam and lockers for storage of too ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Foam Tenders and some of the Water Tenders; that the Fire Tenders, namely Emergency Tenders, Rescue Tenders, Jeep Fire engines do not have the arrangements for monitors; that even if it is decided that monitors are machines, the total clearance in any financial year would fall within the exemption limit of Rs. 30 lakhs under Notification No. 1/93-C.E. He, thus, contended that the Appellants have duly complied with the conditions of the Notification No. 162/86-C.E. 4. The learned Senior Counsel finally submitted that the demand of duty is time barred as the show cause notice was issued on 30-4-1998 for demanding duty for the period from 1-3-94 to 6-9-97 as they had not suppressed any facts; that right from the beginning their intentions we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ors, whom the show cause notice was issued to, were aware of the fact that the exemption availed by them was erroneous; that the said findings clearly establishes the bona fide of the Appellants and there was obviously no intent to evade any payment of duty. 5. Countering the arguments, Shri Prabhat Kumar, learned S.D.R., reitrated the findings as contained in the impugned Order and emphasised that Bombay Collectorate s Trade Notice has to be read with Notification No. 162/86 as amended by Notification No. 242/86; that the special purpose motor vehicles were exempted from duty only if the excise duty has been paid on the chassis and equipments used in the manufacture of Vehicles; that this is a requirement prior to the equipment being use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear in their letter dated 25-8-1986 addressed to the Assistant Collector that they would not be paying duty on body building. Thus the department was aware that the Appellants are availing of the exemption from payment of duty under Notification No. 162/86-C.E. and the Department should have checked whether the conditions specified in the said Notification i.e. chassis and other equipments are duty paid, have been satisfied or not. The appellants have also referred to the Audit Report in which it is clearly mentioned that they were manufacturing Water/foam, DCP monitors, Foam Makers/Foam Chambers, and other fire extinguishing appliances. The Audit also pointed out that duty was payable by them on body building as the condition of the Notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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