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2015 (10) TMI 371 - AT - Central ExciseManufacture - SSI exemption - customization of the already built up motor vehicle - body building - exemption under Notification No. 3/2001 denied on the ground that the assessee availed the Cenvat credit of the input which is in violation of condition of said notification. - Held that:- They are doing cosmetic changes as per the requirement of the customer inside and outside of the vehicle. In our considered view these activity do not amount to manufacture for the reason that the original duty paid motor vehicles remained as motor vehicles only, except some changes and due to these changes original identity of the product in terms of Central Excise provisions does not change As per the fact of the present case it is undisputed that in the activity of customization of the car, the respondent has only made partial changes in the completely built up vehicle therefore they have neither fabricated any body/equipment nor mounted the same on chassis. Therefore the activity of customization carried out by the respondent does not fall under the four corners of chapter note 3. - Decided in favor of assessee. As regard the dropping of the demand on account of alleged removal of add on kits and parts and shortage found in the physical stock verification in Powai and Silvassa units, we find that there are serious conflicts between the allegation made in the show cause notices and Commissioner's findings in the impugned orders. The Ld. Counsel also made submissions that due to claim of SSI Exemption demand is not sustainable and also it is time bar. We therefore find that as regard demand of excise duty on alleged removal of add on kits and parts from Powai and Silvassa units needs re-consideration. - matter remanded back on this matter. Determination of turnover for the purpose of SSI exemption - extended period of limitation - Matter remanded back for reconsideration.
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