9911796707
TMI Blog2002 (10) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... to accept the reasoning in the impugned order that term 'equipment used' in the notification refers to the final body manufactured by the appellants. We find it rather strange that the Technical Members seek to justify such a reasoning on the ground that there is a separate Tariff Item No. 87.07. It was nobody's claim that the appellants' special purpose motor vehicle falls under Tariff Item No. 87.07. As stated above, Tariff Item No. 87.07 would only apply if a body was being sold separately by itself. The term 'equipment' used in the notification necessarily refers to the material and the inputs which have gone into manufacturing the special purpose motor vehicle. As has been correctly held by the Judicial Member duty has been paid on al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vehicles principally designed for the transport of persons (other than those of heading No. 87.02), including station wagons and racing cars. 40% 87.04 8704.00 Motor vehicles for the transport of goods. 25% 87.05 8705.00 Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete-mixer lorries, road sweeper lorries, spraying lorries, mobile workshops, mobile radiological units) 25% 87.06 Chassis fitted with engines, for the motor vehicles of heading Nos. 87.01 to 87.05. - 8706.10 For the vehicles of heading No. 87.01 15% - 8706.20 For the vehicles of heading No. 87.02 25% plus Rs. 6000 per chassis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e duty of excise has been paid on the chassis of such vehicles and the equipments used in the manufacture of such vehicles. 3. The appellants did not pay any excise duty on the special purpose motor vehicle manufactured by them on the basis that this Notification exempted them from payment of duty. 4. A demand notice came to be issued on 18th April, 1991. The appellants replied to the notice. The Collector of Central Excise held that the appellants were not entitled to the benefit of the notification as duty has not been paid on the equipments used by them in the manufacture of special purpose motor vehicles. The Collector, by his order dated 29th April, 1992, levied excise duty and penalty on the appellants. 5. The appellants then filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehicle or a transport vehicle or a motor car, they would not fall under Tariff Item Nos. 87.06 and/or 87.07. Tariff Item No. 87.06 will apply only when a chassis is being sold separately as a chassis. Tariff Item No. 87.07 will apply only when a body is being sold separately as a body. However when a vehicle is assembled, then it would fall under the specific Tariff Item in respect of that vehicle. 7. Admittedly, the Tariff Item sought to be applied in the demand notice is Tariff Item No. 87.05. The exemption of the notification is being denied to the appellant on the ground that they had not paid duty on the equipment used. The body manufactured by the appellants and fitted on the duty paid chassis is considered as being equipment. To be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Member duty has been paid on all the inputs used by the appellants. As duty has been paid on all the inputs and as duty has been paid on the chassis, the appellants are covered by the exemption notification. In our view the appellants are entitled to the benefit of the exemption notification. 8. We, therefore, set aside the impugned order and hold that the appellants are entitled to exemption of the notification No. 162 of 1986, dated 1st March, 1986. 9. Reliance was placed on Rule 9 of Central Excise Rules and it was submitted that at an intermediate stage, equipments like Hydraulic Jacks, Cranes, Conveyor Belts are manufactured by the appellants. It was submitted that excise duty had to be paid on these equipments. It was submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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