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2015 (11) TMI 362 - AT - Central ExciseDenial of refund claim - Automobile cess - whether the appellant being job worker i.e. manufacturer of body building is required to pay automobile cess or not as per Automobile Cess Rules, 1984 read with Industries (Development and Regulation) Act, 1951 or not - Held that:- Matter of levy of automobile cess was referred to Administrative Ministry i.e. Ministry of Industries and as intimated the intention behind the notification levying the cess is to realized from the vehicle manufacturers and not from the body builders. Further, as per IDR Act, 1951, the notification levying of cess has been issued, which provides that the rate of cess shall not, in any case, exceeds to two percent of the value of the goods i.e. 1/8th per cent of the value of the vehicle. It was also clarified that the cess may continue to be levied and collected 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 builder on the cess paid chassis. Therefore, there was no intention of the Administrative Ministry to levy cess on the activity of the body building. In that case, although the appellant may be the manufacturer in the light of the Chapter Note 5 of the Chapter 87 of the Central Excise Act, 1985, the automobile cess cannot be levied or collected from the appellant. - automobile cess cannot be demanded from the appellant. Therefore, the demand on account of automobile cess along with intened set aside. - Decided in favour of assessee.
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