1987 (7) TMI 258

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..... ed vehicle with its accompanying trailer form a single unit they call auto-track; the spare wheel to which the tyre and tube are fitted, is meant for the single unit auto-track; it is not for the trailer. He argued that such spare tyres are accepted as original equipment forming part of motor vehicles in commercial and industrial practice. For example, all motor vehicles are cleared with spare tyres, and the whole assessed as one, the spare tyre being accepted as original equipment for all the vehicles, whether 2-wheeler, 3-wheeler or 4-wheeler. 2. There is no need to labour the point. A spare tyre known as the stepney always forms an original equipment cleared with all powered vehicles, and we are aware that such is the accepted prac .....

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..... to be a trailer. Now when the stepney has to be fitted because one of the five tyres of the unit requires replacement, it becomes a part of the wheel assembly of the unit. It can be fitted to the 3-wheel pulling unit; it can just as easily be fitted to the trailer if one of the two tyres needs replacement. No one will ever know which part of the unit the stepney goes into as replacement. It can be either of the two units, and since the trailer has a wheel and tyre that can accept the stepney as replacement, the stepney or spare sheet is in reality a reserve not for just the powered 3-wheeler, but also, for the trailer behind it. 4. It is, therefore, not a mere case of passing off the spare tyre and tube for the 3-wheeler but also, fo .....

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..... mption had been taken without entitlement; the tyres and tubes diverted to uses not sanctioned for exemption, and not to just one tyre and tube, but to 3 tyres and tubes. How did M/s. Bajaj accept liability for the two tyres and tubes fitted to trailers? Surely, according to them, the Central Excise would know or would have known they were not covered by the exemption. Why would the spare tyre and tube also not be served identically? All three were diverted illegally and used impermissibly. 8. But were the Central Excise aware? We think not. They were not told that the tyres and tubes had been used irregularly? After all, the factory does manufacture motor vehicles for which similar tyres and tubes receive legitimate duty subsidy. So .....

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