9911796707
TMI Blog2012 (11) TMI 824X X X X Extracts X X X X X X X X Extracts X X X X ..... CE as amended and the confirmed the demand after granting the benefit of small scale exemption Notification No. 1/93-CE dated 1.3.1993. The contention of applicant is that the Notification No. 27/2002-CE(NT) dated 23/7.2002 is issued under Section 11AC of the Central Excise Act, granting exemption from payment of Central Excise duty to bodies built by independent body builders on motor vehicle chassis. The benefit of this notification was denied by the adjudicating authority on the ground that the benefit is available in respect of the goods classified under Chapter heading 87.02, 87.03 and 87.04 of the Central Excise Tariff, whereas the bodies built by the appellant are covered under the heading 87.07 of the Central Excise Tariff. The cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lding a body on chassis amounts to manufacture of a motor vehicle at the hands of the body builders; that accordingly, they cleared the body built motor vehicle under Headings 87.02 or 87.04, as the case may be after claiming exemption under Notification Nos. 162/86 or 5/98-C.E. (serial No. 244); that even then the Commissioner (Appeals) under the impugned Order has held that the appellants are required to pay central excise duty on body of motor vehicles falling under heading No. 87.07; that accordingly, the benefit of Notification No. 162/86 has been denied to them. Learned Advocate further submitted that even if it is held that they are liable to pay duty on the body built on motor vehicle chassis under Heading 87.07 of the Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is would remain classifiable under Heading 87.07. This decision of the Tribunal has been affirmed by the Supreme Court as observed by the Larger Bench of the Tribunal in the case of Ambala Coach Builders v. C.C.E. - 2000 (119) E.L.T. 713 (Tri-LB). The Central Government has issued a Notification No. 27/02-C.E. (N.T.), dated 23-7-2002 observing that that a practice was generally prevalent regarding levy of duty of excise on the bodies built by independent body builders on the motor vehicle chassis under Headings 87.02 to 87.04 instead of Heading 87.07 and that such bodies were liable to a higher amount of duty of excise than what was levied according to the said practice during the period from 1-5-1991 to 28-2-2001. The Central Government by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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