New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (3) TMI 435 - CESTAT BANGALORE

2016 (3) TMI 435 - CESTAT BANGALORE - TMI - Mounting charges inclusion in the assessable value of the bodies - demand of duty in respect of the bodies which were being cleared by them after being mounted on the chassis on the ground that the mounting activity is part and parcel of the manufacturing activity in terms of the provisions of Chapter Note 3 of Chapter 87 and as such the mounting charges are required to be included in the assessable value of the bodies

Held that:- The Reven .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

only when an assessee acts with a malafide intention and there is a positive suppression or misstatement by him with an intention to evade payment of duty. Otherwise also, we note that the appellant was working under a job work Notification No. 214/86 in which case there would be no duty liability on the assessee if the procedure as envisaged under the said Notification is duly followed by them. However, having paid the duty on the value of the bodies only and having paid the service tax on the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

imitation. Accordingly we hold so. However a part of the demand would fall within the limitation period for which the matter is being remanded to the original adjudicating authority for quantification of the same. While judging the appellant's liability to pay the central excise duty, the benefit of the service tax already discharged by them would be given to them and their liability would be neutralized to that extent.

As we have already held that there is no malafide on the part of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as such or after being fitted in the chassis supplied by the customers on payment of duty. 2. They entered into a contract with M/s Volvo India Ltd. under two purchase orders one for manufacture of the bodies and the other for mounting the same on chassis under the procedure of job work challans. The appellant paid duty of central excise on the bodies so fabricated and sold by them to their customers and in respect of the mounting charges, they paid the service tax by treating the said part of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

8377; 12,22,440/- was raised for the period from April 2002 to July 2005. The said demand was contested by the appellants on merits as also on the ground of revenue neutrality and limitation. However by rejecting the said pleas of the appellant, the same was confirmed by the original adjudicating authority along with confirmation of interest and imposition of penalty of ₹ 3,00,000/- in terms of Section 11AC of Central Excise Act 1944. On appeal, the said order was confirmed by Commissioner .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

unting or fitting of body on the chassis shall amount to manufacture of a motor vehicle. Learned advocate, at this stage, drops his submissions on merits and submits that inasmuch as they were paying service tax on the mounting activities and Revenue was accepting such service tax, the entire facts were in the knowledge of the Revenue and there can be no allegation of any suppression or malafide misstatement so as to invoke the longer period of limitation. He strengthens the above argument by su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

alty as there was no malafide on their part. 5. Countering the arguments, learned A.R. submits that filing of service tax returns and payment of service tax on the said activity will not absolve the appellant from the charge of suppression or misstatement inasmuch as the law on the issue is clear in terms of Chapter Note 3 of Chapter 87 that mounting or fitting of structures or equipment on the chassis falling under Heading No 87.06 shall amount to manufacture of a motor vehicle. As such, the ap .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version