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TMI Blog2017 (8) TMI 1215X X X X Extracts X X X X X X X X Extracts X X X X ..... ), For the Respondent ORDER Per Bench The appeals are directed against 137 & 138/2005 (M-I) both dt. 29.12.2005. The facts of the case are that appellants are engaged in the manufacture of chassis for motor vehicles falling under sub-heading No.8706.29 and 8706.49 among other things. They procure tyres/tubes/flaps under concessional rate of duty in terms of SI.No.81 of notification 6/2002-CE d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re also proposed to be imposed on them under Rule 25 of the Central Excise Rules, 2002 besides interest under section 11AB of the Central Excise Act, 1944. After due process of law the lower authority confirmed the above demands with interest. Penalties of Rs. 10,000 & Rs. 50,000/- were also imposed under Rule 25 of the Central Excise Rules, 2002. When the issue was carried to Commissioner (Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed order. He argued that commodities viz. tyres, tubes, flaps have been procured by the appellant from the tyre manufactures without payment of duty in terms of the Notification No.6/2002-CE dt. 1.3.2002 (Sl.No.81 and Condition No.5). The appellant had undertaken to use such goods in the manufacture of motor vehicles. The Motor Vehicle Act specifically requires motor vehicles to be cleared with se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition No.5 are reproduced below for ready reference : S. No Chapter or heading No. or sub-heading No. Description of goods Rate under the First Schedule Rate under the Second Schedule Condition No. (1) (2) (3) (4) (5) (6) ... ... ... ... ... ... 81 4011.90, 4012.11, 4012.19, 4012.90 or 4013.90 Tyres, flaps and tubes used in the manufacture of machinery falling under heading No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argument advanced by ld. advocate. The Motor Vehicle Act has statutorily required motor vehicles to have seven tyres - six tyres fitted to the chassis and seventh as a spare tyre. At the point of sale of the motor vehicle, only six tyres have been found fitted on the chassis. Such being the case, the contention of the appellant that the seventh tyre also has been used in the motor vehicle cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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