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Skoda Auto India Pvt. Ltd. Versus Commissioner of Central Excise And Customs, Aurangabad

2016 (5) TMI 1064 - CESTAT MUMBAI

Allowability of refund claim - motor vehicles sold as taxis- partial exemption allowed by notification no. 6/2006-CE dated 1st March 2016 - conditions of the exemption notification had been complied with except that the taxis were registered for a limited period of five years - Held that:- in view of the decision of Tribunal in the case of Maruti Udyog Ltd. v. Collector of Central Excise New Delhi [1998 (8) TMI 399 - CEGAT, NEW DELHI] which has been upheld by the Hon'ble Supreme Court reported i .....

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consequential relief - Appeal Nos. E/1590 to 1602/2012; E/85588/2013, E/89732 to 89734/2013 E/87201, 87202 & 85587/2013, E/87203/2013, E/89874/2014 & E/85532 & 85533/2015 - A/86985-87008/16/EB - Dated:- 8-10-2015 - M. V. Ravindran, Member (J) And C J Mathew, Member (T) For the Appellant : Ms Padmavati Patil, Adv For the Respondent : Shri Ajay Kumar, Jt. Commissioner (AR) ORDER Per C J Mathew This batch of 24 appeals have been filed by M/s Skoda Auto India Pvt Ltd against various orders-in-appeal .....

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to dealers across the country and some of these are sold by dealers for use as 'taxis'. The Central Government extends the benefit of concessional rate of excise duty for motor cars, that are used as public carrier, i.e. as taxis. 4. The scheme has been derived as a refund mechanism whereby the manufacturers are required to pay full excise duty at the time of clearance and for them to take credit to the extent of exemption upon reimbursement of the amount to the buyer who submits proof .....

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ld appear from the records that the jurisdictional Assistant Commissioner, who had satisfied himself that the conditions of the exemption notification had been complied with except that the taxis were registered for a limited period of five years, and finding this to be repugnant to the conditions, rejected the claim. The relevant finding in one of the orders-in-original (no. 24/CEX/AC/Ref/12 dated 21 st December, 2012) is representative: "It is observed as per the details shown in the tabl .....

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violated the conditions of the Notification and refund claim filed by them is wrong and un-sustainable. The credit availed by the assessee is wrong and un-authorised and need to be recovered from the assessee." The first appellate authority has concurred with this finding and upheld the rejection of the refund claims. 6. The appellant relies upon the decision in Maruti Udyog Ltd. [2000 (122) ELT 747 (T), Maruti Udyog Ltd. [2000 (124) ELT 1175 (T)] and Premier Automobiles - 2015-TIOL-138-CES .....

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e Statute (vide article entitled 'A Note on Interpretation of Statutes' by Markandey Katju, J., published in the Journal Section of AIR 2007 SC page 22). In the present case, Section 2 (14-AA) of the Act states that "manufacturing process" shall have the meaning assigned to it in the Factories Act, 1948. In the Factories Act, 1948, Section 2(k) of the Act includes pumping oil as a manufacturing process. 11. In our opinion, the only rule of interpretation which applies to the fa .....

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rve that the Tribunal has already rendered a finding in this matter in re Maruti Udyog Ltd cited supra, which has been upheld by the Hon'ble Supreme Court [2001 (127) ELT 1175 (T)]. We find that the said decision has been rendered in the context of the exemption provided in notification 162/86-CE dated 1 st March 1986 which is the predecessor notification of the one to which the present disputes pertain. The concessional rate of duty extended by notification no. 6/2006-CE at serial no. 34 is .....

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n of the Government of India in the Ministry of Finance (Department of Revenue), at the time of clearance of the vehicle; (b) the manufacturer takes credit of the amount equal to the amount of duty paid in excess of that specified under this exemption, in the Account Current, maintained in terms of Part V of the Excise Manual of Supplementary Instructions issued by the Central Board of Excise and Customs and thereafter files a claim for refund of the said amount of duty before the expiry of six .....

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ty, to the effect that the said motor vehicle has been registered for sole use as ambulance or taxi, as the case may be, within three months, or such extended period not exceeding a further period of three months as the said Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, may allow, from the date of clearance of the said motor vehicle from the factory of the manufacturer; (3) a copy of the document evidencing the payment of excise duty, .....

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Within seven days of the receipt of the said claim for refund, the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, after such verification, as may be necessary, shall determine the amount refundable to the manufacturer and shall intimate the same to the manufacturer. In case the credit taken by the manufacturer is in excess of the amount so determined, the manufacturer shall, within five days from the receipt of the said intimation, rev .....

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sly refunded. In case such irregular or excess credit is utilized for payment of excise duty on clearance of excisable goods, the said goods shall be considered to have been cleared without payment of duty to the extent of utilization of such irregular or excess credit." 9. The original authority and the first appellate authority have taken the stand that the benefit of notification can be extended subject only to permanent registration as a taxi whereas the registration in all the claims w .....

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ould subject such vehicles to tests of worthiness and maintenance at more frequent intervals. It is obviously for this reason that an open ended registration is not envisaged under the Motor Vehicles Act. Nor is it reasonable to insist upon such permanent registration. The lower authorities should have borne this in mind considering that all other conditions stipulated for eligibility of the concessional rate have been complied with. 10. Our attention has been drawn by the learned Authorised Rep .....

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upon a tenure that is not expressly stated there. We are further guided by the decision of this Tribunal in Maruti Udyog Ltd. v. Collector of Central Excise New Delhi [2000 (124) ELT 1175 (Tribunal)] which has been upheld by the Hon'ble Supreme Court [2001 (127) ELT A 169 (SC)]. This decision has been followed by the Tribunal in the case of Premier Association Ltd. v. Commissioner of Central Excise, Mumbai - II - 2015-TIOL-138-CESTAT-MUM. The relevant extract of the decision of the Tribunal .....

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nded period as the said officer (Assistant Collector of C.E.) may allow, to the effect that each such saloon car has been registered for use solely as a taxi". 9.2 It is not disputed that such certificates have been produced by the appellants. Department is, therefore, required to look into those documents whether they satisfy the requirement of that certificate mentioned in condition No. (2). If those documents (certificates) show the registration of the vehicles for use solely as taxi, de .....

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he forged document. 9.3 Notification 162/86-C.E. does not give the authority to the department to check and verify whether at the time of adjudication or satisfaction of condition No.(2) by the Assistant Collector, the vehicle is in use as a taxi and on verification of such a vehicle not being found to be used as a taxi, to demand duty from the manufacturer/appellants. 9.4 Question before us is not whether a duty liability on a vehicle cleared under Notification 162/86 would continue if the vehi .....

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