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2016 (9) TMI 574 - AT - Central ExciseWhether the appellant being job worker i.e. manufacturer of body building is required pay automobile cess or not as per Automobile Cess Rules, 1984 read with industries (Development and Regulation) Act, 1951 or not - Held that:- on introducing the Circular No. 41/88 dated 31st August, 1988 by CBEC, the 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 realize from the vehicle manufacturers and not from the body builders. Further, as per IDR Act, 1951, the notification for levying of cess has been issued, which provides that the rate of cess shall not, in any cess, exceeds to two percent of the value of the goods i.e. 1/8th per cent of the value of 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. Therefore, the arguments advanced by the Revenue are not acceptable as the said clarification issued by the Ministry of Industries has not been withdrawn till date. In that situation, the decision of the Tribunal in the case of Tata Motors Ltd. vs. CCE, Pune-III [2015 (1) TMI 1082 - CESTAT MUMBAI] is squarely applicable to the facts of this case. - Decided in favour of appellant
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