TMI Blog2019 (8) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... ers, the learned Advocate submitted that the shells are initially fabricated and then mounted on the chassis which ultimately used for transporting cement and fly ash. Therefore, by mounting the shell on the chassis by virtue of Note 5 of Chapter 87, activity becomes manufacture and the resultant would be considered as a motor vehicle. The Appellant has rightly classified the fabricated/mounted shell on the duty paid chassis falling under CSH 87042319 of Central Excise Tariff Act, 1985. Benefit of N/N. 6/2006-CE,dt.1.3.2006 S.No.39, (Condition No.9) - HELD THAT:- Appellants are eligible to the benefit of the said notification as they have also fulfilled the other condition of not availing CENVAT Credit on the inputs used in the manufacture of the bulkers. However, there is no merit in the contention of the Appellant when they advanced similar argument to 45 Cubic Mtrs bulkers, which are fabricated and attached with tri-axle tyres and other accessories and are attached to the horse by a king pin. These are semi-trailor type of motor vehicles and not covered under the scope of the said exemption notification, accordingly dutiable. Extended period of limitation - HELD THAT:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as shell with base) from the HR sheets. Further, after receiving shell with base from the job worker, they installed pneumatic pipeline on the exterior of the shell. Thereafter, installed the tri-assembly on the rear side of the shell. Some other accessories like tail-lamp, safety valve, pressure guage etc installed on the shell. A king pin is welded on the bottom side of the shell which helps the shell to be hooked to the horse (i.e. chassis of the truck). Regarding the manufacturing/fabrication of 30 Cubic Mtrs, the procedure is one and the same except that the tri-axel assembly of tyre is absent and the Pin is not welded at the bottom side of the shell. On the contrary, the shell is mounted on the chassis and fitted with nut and chassis mounting bolts. It is his contention that 30 Cubic Mtrs bulkers are moulded as chassis mounted bulkers whereas 45 Cubic Mtrs bulkers are classified as semi-trailor type bulkers by the Appellant. It is his contention that the bulkers which are mounted on the chassis used for transportation of the cement and fly ash, correctly classifiable under CSH 87042319 in view of Chapter Note 5 of Chapter 87 of Central Excise Tariff Act, 1985. It is his argu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Appellants are fabricating capsules of various dimensions having opening from both sides. These capsules are fitted into bulkers by way of fabrication as per design and technology for carrying the cement or fly ash which is designated as bulkers. Bulker is nothing but a tank manufactured for special purpose i.e. transportation of cement or fly ash. These bulkers are fitted with nuts and bolts by mounting the same on duty paid chassis supplied by the customer. These bulkers are not permanently attached to the chassis and can be easily mounted or dis-mounted as per the requirement of customer by removing or fixing nuts and bolts. Thus, the activity is manufacturing of storage tank and not a bulkers for special purpose with special design in order to carry cement from the cement plant or fly ash to the cement plant. Thus, the bulker is correctly classifiable under CSH No.8707 and not 8704 as claimed by the Appellant. Further, he has submitted that the bulkers which are fitted with tri-axles and with king pins to be attached to the horsed, cannot in any manner, be considered as motor vehicle falling under Chapter 8704 of Central Excise Tariff Act, 1985. On the other hand, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilar to the present Chapter Note 5, observed as follows:- 4. We have considered the submissions of both the sides. The Punjab and Haryana High Court in the case of Darshan Singh Pavitar Singh v. U.O.I., 1988 (34) E.L.T. 631 (P H) which was confirmed by the Division Bench of the said High Court as reported in 1990 (47) E.L.T. 532 (P H) has held that the person who only made or fabricated bodies for buses and trucks on the chassis supplied by their customers do not manufacture motor vehicle but they manufacture only bodies of motor vehicles and their chassis are fully covered by Heading 87.07 . Thereafter Note 3 was inserted in Chapter 87 of the Central Excise Tariff which provided that for the purpose of Headings 87.01 to 87.05, the activity of body building or fabrication or mounting or fitting of structures or equipment on the chassis shall amount to manufacture of motor vehicle. This Chapter Note came up for consideration before the Tribunal in the case of Kamal Auto Industries v. CCE, Jaipur - 1996 (82) E.L.T. 558 (T) wherein the Tribunal held that the said Chapter Note does not cover the body building on chassis fitted with engine which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Motor vehicles principally designed for the transport of more than six persons, excluding the driver, including station wagons; and (ii) Motor vehicles for transportation of goods (other than those specially designed for the transportation of compressed or liquefied gases), falling under Heading 8704; and (iii)three wheeled motor vehicles NIL 9 Condition No.9 :- 9. If manufactured out of chassis falling under heading 8706 on which duty of excise has been paid and no credit of duty paid on such chassis and other inputs used in the manufacture of such vehicle and has been taken under Rule 3 or Rule 13 of the CENVAT Credit Rules, 2004: (a) Who is manufacturing such vehicle on the chassis supplied by a chassis manufacturer, the ownership of which remains vested in the chassis manufacturer or the sale of the vehicle so manufactured is made by such chassis manufacturer on his account; and (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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