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2011 (7) TMI 201 - CESTAT, NEW DELHIDemand and penalty - Manufacturer of motor vehicle chassis - Hence, chassis cannot be treated as an input partially processed in terms of Rule 4(5)(a) of the Cenvat Credit Rules - But, held that chassis is semi finished goods in the context of body built vehicle which is a final product - Further, find that the tariff itself prescribing higher rates of duty for chassis by prescribing additionally a specific component of BED for chassis unlike in the case of body built vehicle - Since the duty paid on the body built vehicle is clearly on the higher side than the duty payable on the chassis as per the proposal by the department, there is no evasion of duty involved - Find that the body built vehicle has been allowed to be removed without payment of duty by respondent 2 ( no demand also is raised on the respondent 2) and the same received by respondent 1 and cleared on payment of higher amount of duty - Thus, do not find any justification to interfere with the order of the Commissioner in dropping the demand against respondent 1 and in not imposing penalties on the respondents - Decided in favour of assessee.
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