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M/s Eicher Tractors Ltd., Shri V.P. Arya, Shri Sunil Datt Versus Commissioner of Central Excise, Faridabad

2016 (1) TMI 64 - CESTAT NEW DELHI

Duty demand - Manufacture of transmission assembly - Captive consumption - during the period 1996-1998, the tractors with capacity of less than 1800 cc were exempt - Extended period of limitation - Held that:- single assembly line had eliminated the emergence of various intermediate products for separate accounting and listing, and integrated assembly line is a continuous seamless process finally resulted in the manufacture of tractors. As such it is not sustainable to allege suppression of fact .....

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tement on the part of the appellants. The reason for revised classification list has been explained in the covering letter of the appellants. Finally, we find that non payment of duty during the impugned order cannot be attributed to wilful conduct of the appellants as tax liability on such items was subject matter of dispute and settled only by the Apex Court. As such, if at all, it can be a mistake which is common to both department and the appellant and in such situation no extended period ca .....

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her for decision. 2. Brief facts of the case are that the main appellants are engaged in the manufacture of tractors of various models liable to Central Excise duty. They are in the business of manufacture of tractors since 1959. The issue in present appeals relate to the period 1.1.1996 to 31.5.1998 involving the duty liability on transmission assembly manufactured and consumed by the appellants. The proceedings initiated against the appellants resulted into Order-in-Original dated 28.1.2005 wh .....

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mitted that they have no case on merits. However, he strongly contended that the demands were clearly hit by time bar in terms of section 11A of Central Excise Act, 1944. He submitted that during the period 1996-1998, the tractors with capacity of less than 1800 cc were exempt under Notification No.162/86-CE dated 1.3.1986. The components for such tractors were exempt under Notification No.239/86-CE. The appellants have been filing the classification list showing components as exempt. From 1.3.1 .....

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ey have stopped taking input credit and also reversed modvat credit on inputs lying in stock as on 17.7.1994. They have filed revised classification list with effect from 18.7.1994. After the introduction of revised provisions of Rule 173B for classification/declaration from March, 1995, certain informations were called for by department which were also submitted. From April, 1994, the appellants started sending transmission assembly to their unit in Bhopal. In November, 2000, Central Excise off .....

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as neither manufactured item nor a marketable product in respect of TAPE. The said decision of the original authority was upheld by the Tribunal vide order dated 12.11.2009. The manufacture and marketability of transmission assembly and thereupon dutiability was finally decided by the Supreme Court in a combined order in Escorts Ltd. (supra). Learned Counsel drew our attention to the findings of the Supreme Court to the effect that demand for extended period on the ground of suppression of facts .....

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diate products, transmission assembly and they have deliberately failed to mention the same in their classification filed on 18.7.1994. Under self removal procedure system, it is pointed out that duty is cast on the assessee to take action towards payment of duty, when the exemption availed was withdrawn on a particular day. He strongly pleaded that difference in contents of classification lists prior to and post July, 1994 should be construed as an attempt of not furnishing full information on .....

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the appellants have been informing the department at various stages regarding various types of items manufactured and consumed/cleared by them and also the introduction of single assembly line with effect from March, 1994. We find that on similar set of facts, Hon'ble Supreme Court held that there is no case for invoking extended period for demand. It is also admitted fact that different views have been taken by the different authority of department and also the Tribunal in respect of marke .....

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idered by the Hon'ble Supreme Court are squarely applicable to the present appeals. The main appellants are engaged in the manufacture of tractors for many decades and there is no new product added during the impugned period. The question involved is one of interpretation which admittedly was done differently in different jurisdiction. We are not in agreement with the contention of the learned special counsel for the Revenue that there is deliberate omission in the classification list dated .....

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