9911796707
TMI Blog2012 (11) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... with imposition of penalty of Rs. 50,000/- on Shri Satish Kumar, Director. 2. The appellants are engaged in the manufacture of bodies of buses on the chassis received by them from Tata Motors. The complete vehicle was cleared by them to M/s. Delhi Metro Rail Corporation (hereinafter referred to as DMRC) by claiming the benefit of Sl. No. 90 of Notification No. 6/2006-C.E., dated 1-3-06. In terms of the said Sl. No. of the Notification, all items of equipment including machinery and rolling stock procured by and on behalf of DMRC are exempted subject to condition No. 18. As per condition No. 18 "(ii)", the exemption is available if the goods are part of the inventory maintained by DMRC and shall be finally owned by DMRC. 3. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants fairly agrees that no duty stands paid by M/s. Tata Motors. However, he submits that inasmuch as the show cause notice stand issued to M/s. Tata Motors proposing confirmation of demand on the chassis, the same should be considered as having been paid. Countering the above argument, ld. DR submits that the mere fact that the show cause notice stands issued to M/s. Tata Motors cannot be considered as if M/s. Tata Motors has paid the duty. Admittedly the chassis provider having not discharged duty burden on the chassis, the Condition No. 9 of the Notification does not stand satisfy and the benefit of Sl. No. 39 cannot be extended to the appellants. 6. We agree with the above contention of the ld. DR. The requirement of fulfilmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of the vehicle and not on the bus bodies being manufactured by them. He also clarifies that the bus bodies have not been fabricated by the appellants on job work basis. 10. We prima facie agree with the above contention of ld. DR. The Excise duty is required to be paid on the full value of the final product, being cleared from the manufacturer factory. We may observe here that the procedure of availment of Modvat credit stands laid down only for this purpose of reducing the cascading effect of payment of duty on all the products consumed in the manufacture of final product. Inasmuch as in the present case, no duty stands paid on the chassis, even the credit is not admissible to the appellants. 11. Ld. Advocate strongly argue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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