Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (2) TMI 259 - AT - Central ExciseReturned goods - re-conditioning of the duty paid motor vehicle in the factory of the appellant - Rule 16(2) of the Central Excise Rules, 2002 - whether the the process on the re-made goods, amounts to manufacture or not? Held that: - The process carried out by the appellant does not amount to manufacture as the motor vehicle was completely manufactured and sent for test therefore after return of the said motor vehicle no process which amounts to manufacture was carried out, therefore in terms of Rule 16(2) of Central Excise Rules 2002 the appellant is required to pay the duty on reissue of the motor vehicle equivalent to cenvat credit availed at the time of re-entry of the motor vehicle in their factory. However the duty paid by the appellant is short, accordingly the differential duty demand confirmed and upheld by the lower authority is sustainable. Reduced penalty was upheld on the ground that there is no mala fide intention to evade payment of duty on the part of the appellant. Extended period of limitation - the appellant have been filing the periodical returns which indicates the payment of duty, for this reason also there is no suppression of fact. In this fact the demand prior to 26.7.2003 will not sustain being time bar. Appeal allowed - decided partly in favor of appellant.
|