Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 145 - CESTAT NEW DELHIWaiver of pre deposit - Whether the appellant, who are body builders, would be liable to pay automobile cess on the complete vehicles cleared by them from their factory - held that:- Tribunal's judgement in the case of S.M. Kannappa Automobiles P.Ltd. (2007 (11) TMI 207 - CESTAT, BANGALORE) is based on the Board's Circular no.41/88 dated 31.08.88, wherein it has been clarified that the matter had been referred to the Administrative Ministry, who have intimated that the intention behind the notification levying the automobile cess is to realize such levy from the vehicle manufacturers and not from the body builders, that the provisions of IDR Act, 1951, under which the notification levying the cess has been issued, provides that the rate of cess shall not, in any case, exceed two annas per cent of the value of the goods and if the cess is levied in line with the Central Excise Tariff Act, 1985, the same would exceed the maximum rate of 1/8th per cent prescribed in the IDR Act and therefore, the cess may continue to be levied and collected on the vehicles 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 builders on the cess paid chassis. - prima facie view that notwithstanding the introduction of Chapter Note-5 of Chapter 87 w.e.f. 2005, the Board's Circular No.41/88 dated 31.08.88, which has been issued after consultation with the Administrative Ministry, is still valid. Therefore, prima facie, the impugned order is not correct and the appellant have strong prima facie case in their favour - Stay granted.
|