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TMI Blog2010 (9) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... that if there was no bar on taking credit on chassis as a condition in the notification, then Rule 3(7) would not be applicable - appeal allowed - decided in favor of assessee. - Appeal No. E/248/08, - - - Dated:- 23-9-2010 - S.S. Kang, and S.K. Gaule, JJ V. Sridharan, Adv. for the Appellant JDR for the Respondent JUDGEMENT S.S. Kang, Vice President:- 1. Heard both sides. 2. The appellant filed this appeal against the impugned order whereby the demand is confirmed and penalty is imposed in view of the provisions of Notification 6/2002-CE dated 01.03.2002. 3. The brief facts of the case are that the appellant are fabricating bodies on the duty paid chassis received from M/s Tata Motors. The appellants were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Sita Singh and Sons Pvt. Ltd., Paras Motor Industries Ltd. vs. CCE. The contention of the appellant is that after considering the provisions of Rule 3 of the Cenvat Credit Rules, the Tribunal held in favour of the assessee. The appellant also submitted that demand is barred by limitation. 7. We have gone through the case laws relied upon the appellants. The Tribunal in the case of HMM Coaches Ltd. (supra) held as under:- 7.1. We have carefully considered the submissions from both sides. When chassis was cleared as such by the chassis-builder, required duty of excise has been paid. The appellant, as a body building unit, has taken credit of duty paid on the chassis; they have also taken credit of duty paid on other inputs. Body bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us duty structure between buses and trucks, manufactured by an integrated unit, vis-a-vis independent body builders, who are exempt from excise duty. To reduce the duty differential and to promote body building by integrated bus and truck manufacturers, as a measure of road safety, I propose to increase the duty on chassis from 16 per cent, to 16 per cent plus ₹ 10,000 per chassis, cleared for outside body building. The body building activity in the unorganized sector would, however, continue to remain exempt . 7.4. The ultimate cause of the dispute is that the chassis has suffered additional basic excise duty and credit was taken and the said credit was utilized for paying body built vehicle but there was no additional basic exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 'any inputs' subject to the condition mentioned therein. Viewed in the totality of the context, the term 'any inputs' shall mean 'all inputs'. 8.4. Normally an exemption notification stands independently of the input credit relief scheme. Whenever an exemption is granted subject to the condition that the assessee does not avail cenvat credit, then the assessee should not allowed to take recourse to the provisions of rule 3 of Cenvat Credit Rules and avail credit as well. This is will lead to availing double benefits. A benefit of lower rate of duty on condition that the credit was not taken and also the benefit of cenvat under Rule 3. The provisions of rule 3 (7) aims at denying such double benefits. When cre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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