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TMI Blog2015 (11) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... notification levying of cess has been issued, which provides that the rate of cess shall not, in any case, exceeds to two percent of the value of the goods i.e. 1/8th per cent of the value of the vehicle. It was also clarified that the cess may continue to be levied and collected in the condition they are cleared from the premises of the manufacturers and no cess should be levied again in case the body on the chassis is built by an independent body builder on the cess paid chassis. Therefore, there was no intention of the Administrative Ministry to levy cess on the activity of the body building. In that case, although the appellant may be the manufacturer in the light of the Chapter Note 5 of the Chapter 87 of the Central Excise Act, 1985, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances, show cause notices were issued to the appellant for demanding automobile cess along with interest and penalties were also proposed. The demands alleged in the show cause notice were confirmed along with interest by the adjudicating authority and penalties were dropped. Against the said order, both the sides filed appeals before the Commissioner (Appeals), the department against dropping the penalty by the adjudicating authority and the appellant against the order of demanding automobile cess from the appellant. The ld. Commissioner (Appeals) confirmed the demand along with interest and also imposed penalty on the appellant. Aggrieved from the said orders, the appellant is before us. 3. Shri B.L. Narsimhan, ld. Counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es as per Chapter Note-5 of the Chapter Note 87 of CETA and as per the Automobiles Cess Rules, 1984, the manufacturers of automobiles are required to pay cess. In that sense, the appellant are required to pay automobile cess on their activity and the CBEC's Circular has no relevance to that. In these circumstances, the impugned orders are to be upheld. 5. Heard the parties. Considered the submissions. 6. In this case, a short issue before us is whether the appellant being job worker i.e. manufacturer of body building is required to pay automobile cess or not as per Automobile Cess Rules, 1984 read with Industries (Development and Regulation) Act, 1951 or not. We find that CBEC issued a Circular no.41/88 dated 31.08.1988, which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be levied and collected accordingly. Trade interests should also be suitably informed. 7. On introducing the said Circular, we find that the matter of levy of automobile cess was referred to Administrative Ministry i.e. Ministry of Industries and as intimated the intention behind the notification levying the cess is to realized from the vehicle manufacturers and not from the body builders. Further, as per IDR Act, 1951, the notification levying of cess has been issued, which provides that the rate of cess shall not, in any case, exceeds to two percent of the value of the goods i.e. 1/8th per cent of the value of the vehicle. It was also clarified that the cess may continue to be levied and collected in the condition they are clea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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