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TMI Blog2012 (5) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... make distinction between chassis and running gear, when what was supplied by the assessee to the customers was chassis and the assessee had only done the body building on the chassis, therefore, the benefit of exemption under Notification No. 4/97-C.E., cannot be denied [Mukul Engineering Works (2010 (3) TMI 605 - CESTAT, MUMBAI)] appeal is allowed - E/4023-4024/2003-Mum - A/542-543/2011-WZB/C-II(EB), - Dated:- 25-5-2011 - S/Shri Rakesh Kumar, Ashok Jindal, JJ. Shri Mayur Shroff, Advocate, for the Appellant. Shri K. Lal, SDR, for the Respondent. [Order per : Rakesh Kumar, Member (T)]. The appellant company is engaged in the manufacture of LPG Road Tankers and storage tanks chargeable to Central Excise duty under sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom December, 1997 to December, 2001 under proviso to Section 11A of the Central Excise Act, 1944 along with interest at applicable rate under Section 11AB and also for imposition of penalty on the appellant under Section 11AC ibid. The show-cause notice was adjudicated by the Commissioner vide order-in-original dated 25-9-2003 by which duty demand as raised by the show-cause notice, was confirmed along with interest on duty u/s 11AB and penalty of equal amount on the appellant Company under Section 11AC and besides this, penalty of ₹ 10,00,000/- was imposed on Shri Ganesh Chandra Ghosh, Director of the appellant Company under Rule 209A of Central Excise Rules, 1944 read with Rule 26 of the Central Excise Rules, 2001. Against this ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he frame plus the running gear like engine, transmission, driveshaft, differential and suspension, that Automotive Dictionary.org explains the meaning of chassis as referring to frame, engine, front and rear axles, springs, steering system and fuel tank and, in short, everything but the body and fenders, that the Tribunal in the case of Mukul Engineering Works v. C.C.E., Thane - 2010 (254) E.L.T. 295 (Tri.-Mum) (para 5 of the Judgment), wherein an identical issue was involved, has held that the distinction made by the lower authorities between the chassis and running gear appears to be irrational and what was being done by the assessee was body-building thereon and, therefore, the benefit of exemption under Notification No. 4/97-C.E., canno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this case it is not so, that the Tribunal in the case of Fabtech Engineers v. C.C.E. Cus., Pune - 2006 (201) E.L.T. 53 (Tri. - Mum.) has held that when a manufacturer is building LPG tanker mounted on the trailer falling under sub-heading 8716.00 of the Tariff, the benefit of exemption under Notification No. 241/86-C.E., (predecessor of exemption Notification 4/87-C.E.,) would not be available in respect of value of running gear and landing gear, which would be includable in the assessable value of the goods, that the ratio of this judgment of the Tribunal is squarely applicable to the facts of this case, that longer limitation under proviso under Section 11A(1) has been rightly invoked, as the appellant had suppressed the relevant fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emption is that no credit of duty paid on the chassis had been taken. In this case the appellant had received chassis on which LPG tank fabricated had been mounted and there is no dispute that no MODVAT credit of duty paid on chassis had been taken. The benefit under this Notification is available irrespective of whether goods are classifiable under Heading 87.04 or 87.16. The only objection of the department is that the explanation to this entry does not cover the running gear and hence the value of running gear would be includable in the assessable value of the goods. From the technical literature produced by the appellant, we find that the term chassis means the frame plus the running gear like engine, transmission, driveshaft, differe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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