9911796707
TMI Blog2008 (6) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned Advocates, appeared on behalf of the appellants and Shri S.N. Prasad, the learned Departmental Representative, for the Revenue. 3. The appellants receive chassis which are duty paid from KSRTC and then they undertake the body building activity. Revenue proceeded against the appellants on the ground that the activity undertaken by them amounts to manufacture and also in terms of the notification 6/2002 dated 1-3-2002 vide Serial No. 214 they are required to pay Central Excise duty and therefore proceedings were initiated. The contention of the appellant is that they are covered by Serial No. 212 and satisfy all the conditions given therein. Therefore, they are contending that they are entitled for the benefit of notification un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority in paras 25 and 26 of the impugned order has stated that the appellant had manufactured motor vehicle on chassis supplied by owners/suppliers of chassis The prohibition in entry 212 is only for manufacturing vehicle on a chassis supplied by a chassis manufacturer and not for manufacturing on behalf of a purchase of such chassis. The conclusion of the adjudicating authority is erroneous and the impugned order needs to be set aside. (d) It was submitted that when the issue involves interpretation of exemption notification, allegation of intend to evade payment of duty, imposition of extended period of limitation or penalty under Section 11AC is not justified. The following judgments were relied on: (i) 2007 (210) E.L.T. 84 (Tri-Ah ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les for the transport of goods (other than those specifically designed for the transport of compressed or liquefied gases), falling under heading No. 87.04; and (iii) three wheeled motor vehicles Nil If manufactured out of chassis falling under heading No. 87.06 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 has been taken under Rule 3 or Rule 11 of the Cenvat Credit Rules, 2002; Provided that this exemption is not applicable to a manufacturer of said vehicles - (a) who is manufacturing such vehicle on a chassis supplied by a chassis manufacturer, the ownership of which remains vested in the chassis manufacturer or the sale of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue was not in a position to explain as to how the Entry No. 212 would not be applicable in the case of the appellants. It is not disputed that the vehicles in this case are covered under Chapter Heading 87 and the description given in entry serial No. 212. The conditions are that the vehicle should be manufactured out of chassis on which duty has been paid and no Cenvat credit of duty on chassis and other input had been taken. The appellant satisfies the above condition. He is also not debarred by the provisos in the condition no. 52 which is applicable to serial no. 212. In these circumstances, we are of the considered view that the appellant is entitled for the benefit of the exemption under serial no. 212. Hence, we set aside the impug ..... X X X X Extracts X X X X X X X X Extracts X X X X
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