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2011 (11) TMI 556 - CESTAT MUMBAIWaiver of pre-deposit of duty - Denial of CENVAT Credit - Denial on ground that the activity undertaken by the applicants does not amount to manufacture - Held that:- applicants are importing motor vehicle chassis and paying appropriate CVD and taking credit of the same. The applicants are undertaking certain process on the chassis which are essential as per the Motor Vehicle Rules. As per Rule 124 of the Motor Vehicle Rules which provides the requirements of vehicle rear under run protecting device and the technical requirements of vehicle lateral protection side shall be as per IS specification and as per IS specification rear under run protective device is required. The chassis after doing certain fitments which are required under Motor Vehicles Rules were sent to the job workers under Challan and job workers manufactured the body on the duty paid chassis which were received by the applicants without payment of duty under Notification No. 214/86. However, on the introduction of Rule 4(5)(a) of the Cenvat Credit Rules, the job workers paying duty in respect of body building and the applicants on receipt of the body fitted chassis clearing the same on payment of appropriate duty. Revenue wants to deny the credit of Central Excise duty in respect of chassis imported by the applicants on the ground that the process undertaken by the applicants does not amount to manufacture. As the applicants have paid the duty by reversal of the credit at the time of clearance of motor vehicles, prima facie, we find that the applicants have strong case in their favour. Therefore, pre-deposit of duty, interest and penalty is waived and recovery thereof is stayed during the pendency of the appeal - Stay granted.
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