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TMI Blog2015 (10) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/-. 2. The appellant is engaged in the manufacture of vehicles which are primarily used in defence. The said vehicles are exempted from payment of excise duty vide Notification No. 63/95. The dispute in the present petition relates to the imposition of automobile cess in terms of Automobile Cess Rules 1984 which stands enacted by exercising powers conferred in terms of Section 9 of Industrial (Development & Regulation) Act, 1955. The demand stands confirmed on the ground that the said defence vehicles being manufactured by the appellants are, though exempted from payment of duty of excise, there is no such exemption in respect of Automobile Cess. 3. Learned advocate appearing for the appellant fairly agrees that the main issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eduled industry, the confirmation of automobile cess against them is not appropriate. He accordingly prays for unconditional stay. 5. Countering the argument, learned AR Shri Mohammad Yusuf defends the impugned order of the lower authorities and submits that admittedly, the appellant is engaged in the manufacture of vehicles which fall under Chapter 87 of the Central Excise Act. Merely because the said vehicles are used in defence, they cannot be taken out of the automobile industries. By drawing our attention to Item-7(5) of the 1st Schedule to the Industries (Development and Regulation) Act, 1955, he submits that the examples given therein are only inclusive examples and inasmuch as after mentioning certain types of vehicles, the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cars, buses, trucks, motor cycles, scooters and the like)", which indicates that all types of vehicles would get covered under the expression automobiles. We have also seen the definition of "automobile" as appearing in Rule 2(b) of the Automobile Cess Rules, 1984 which extends the scope of the same by using the expression "....and all other automobiles covered under the sub-heading (5) of Heading 7 'Transportation' of the First Schedule to the Act;" and as such at this prima facie stage we are not in agreement with the submissions made by the learned advocate. 7. We also note that all the demands are within the period of limitation and the appellant has also not specifically pleaded any financial hardship and has not produced any evi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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