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2023 (9) TMI 864 - CESTAT BANGALOREBenefit of exemption under Sl. No.39 of the Notification No. 6/2006-CE dated 01.03.2006 and Sl. No. 276 of the Notification No. 12/2012-CE dated 17.03.2012 denied - - 2545 numbers of motor vehicles manufactured for transport of more than 12 persons falling under Chapter heading 8702 of CETA, 1985 but failed to pay duty - extended period of limitation. Denial of exemption on the ground that clause (a) of the condition No.9 or 27 for availing benefit of said exemptions during the relevant period is not complied with inasmuch as the ownership of the chassis remains vested in the chassis manufacturer viz. VIPL. HELD THAT:- There are no merit in the observation in analyzing/examining the issue whether ownership of the chassis after sale and delivery of possession continues to remain with VIPL thereby the clause (a) of the condition 9 of Sl. No. 39 of Notification No. 6/2006-CE and condition 27 of sr. no 276 of Notification No. 12/2012-CE 17.3.2012, as the case may be, is satisfied or otherwise. The term “ownership” has not been defined under Central Excise Act,1944 or the Rules made thereunder. ‘Ownership’ is a legal concept. Applying the concept of ownership to the present case, it is found that the appellant and M/s VIPL are independent legal entities as both are incorporated under the Indian Companies Act,1956. The chassis manufactured by M/s VIPL sold to the appellant on payment of applicable VAT and excise duty. There is no condition appended to such sale which would indicate the transfer of title, possession etc. is incomplete. The appellant after receipt of the chassis undertake the activity of bodybuilding and dispose of the buses to their customers. In these circumstances, merely because the appellant and M/s VIPL belong to a common group of companies, the transaction between them cannot be considered other than sale or purchase of the chassis and the Ownership of chassis not transferred after sale of the same by VIPL to Appellant. The reference to concept of ‘related person’ under Section 4 of the Central Excise Act, 1944, in analysing, the condition of the Notification whether ownership of the chassis is continued to be vested on chassis manufacturer by the learned Commissioner in the impugned order is out of context, in as much as, the question is not for determination of the value of the chassis sold; hence, reliance placed on the meaning of interconnected undertaking under Section 4 of the Central Excise Act, 1944 is also irrelevant. Further, the clause 1.7 of the Chassis Supply Agreement and Master Agreement dated 01.04.2001 providing license to manufacture entire range of products of ‘AB Volvo’ like trucks, buses, construction equipment etc. to M/s VIPL does not establish the case that the ownership of chassis after being sold by M/s VIPL to the appellant continued to vest on the chassis manufacturer i.e. M/s VIPL - on merit the Appellants are eligible to the benefit exemption Notifications 06/2006-CE dt. 01.3.2006 and 12/2012-CE dt. 17.03.2012. Extended period of limitation - HELD THAT:- The allegations of suppression of the fact of bodybuilding on the supplied chassis by M/s VIPL and availing benefit of exemption Notifications have not been established. Consequently, invoking of extended period is also not justified. Since, the issue on merit i.e. admissibility of exemption notification has been decided in favour of the assessee, the entitlement of CENVAT Credit on duty paid inputs becomes academic and hence not deliberated. Thus, the appellants succeed both on merit as well as on limitation - appeal allowed.
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