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M/s. Gatiman Auto Pvt. Limited v/s CCE & CGST, Indore

Company & Directors' Information:- E R AUTO PRIVATE LIMITED [Active] CIN = U34300HR2002PTC035002

Company & Directors' Information:- GATIMAN AUTO PVT LTD [Active] CIN = U34300MP1990PTC005781

Company & Directors' Information:- K Y AUTO PRIVATE LIMITED [Active] CIN = U50300JK2013PTC003849

Company & Directors' Information:- J. S. B. AUTO PRIVATE LIMITED [Active] CIN = U50300DL2010PTC198144

Company & Directors' Information:- T & R AUTO PRIVATE LIMITED [Active] CIN = U50200TG2012PTC082553

Company & Directors' Information:- D R D B AUTO PRIVATE LIMITED [Strike Off] CIN = U74899DL1988PTC032028

Company & Directors' Information:- A-1 AUTO PVT. LTD [Active] CIN = U51502MH2006PTC165934

Company & Directors' Information:- AUTO INDIA PRIVATE LIMITED [Active] CIN = U65991TN1984PTC010923

Company & Directors' Information:- Z-AUTO PRIVATE LIMITED [Active] CIN = U50500UP2021FTC153664

Company & Directors' Information:- K V AUTO LTD [Strike Off] CIN = U28932PB1994PLC014522

Company & Directors' Information:- K G N AUTO PRIVATE LIMITED [Active] CIN = U74900PN2015PTC157675

Company & Directors' Information:- J. S. AUTO PRIVATE LIMITED [Active] CIN = U34102UP1986PTC008173

Company & Directors' Information:- P S AUTO PRIVATE LIMITED [Active] CIN = U34300MH1999PTC120052

Company & Directors' Information:- P M C AUTO LIMITED [Strike Off] CIN = U34300DL1995PLC071849

Company & Directors' Information:- B C C AUTO PVT LTD [Active] CIN = U74899DL1992PTC051439

Company & Directors' Information:- H H AUTO PRIVATE LIMITED [Amalgamated] CIN = U34100DL2009PTC192880

Company & Directors' Information:- M M AUTO PRIVATE LIMITED [Strike Off] CIN = U50300UP1988PTC009527

Company & Directors' Information:- G B AUTO PRIVATE LIMITED [Strike Off] CIN = U50400MH1998PTC114977

Company & Directors' Information:- M C AUTO PVT LTD [Under Process of Striking Off] CIN = U34300DL1977PTC008716

Company & Directors' Information:- E N B AUTO (INDIA) PRIVATE LIMITED [Active] CIN = U34300PB1988PTC008040

Company & Directors' Information:- K D R AUTO PRIVATE LIMITED [Active] CIN = U34300DL2005PTC132732

Company & Directors' Information:- K S R AUTO PRIVATE LIMITED [Active] CIN = U34300PN2011PTC140367

Company & Directors' Information:- J P AUTO PVT LTD [Strike Off] CIN = U50402WB1991PTC052147

Company & Directors' Information:- E G AUTO PRIVATE LIMITED [Converted to LLP] CIN = U74899DL1987PTC027016

Company & Directors' Information:- R AND H AUTO INDIA PVT LTD [Active] CIN = U74899DL1982PTC013349

Company & Directors' Information:- D D AUTO PRIVATE LIMITED [Active] CIN = U74899DL1985PTC022306

Company & Directors' Information:- C R AUTO PRIVATE LIMITED [Strike Off] CIN = U34300PB1997PTC020137

Company & Directors' Information:- B S K AUTO PRIVATE LIMITED [Strike Off] CIN = U29246PB1997PTC020704

Company & Directors' Information:- K AND K AUTO PRIVATE LIMITED [Active] CIN = U29199TZ1996PTC007431

Company & Directors' Information:- J K M AUTO PRIVATE LIMITED [Strike Off] CIN = U34300DL2005PTC143914

Company & Directors' Information:- K AND K AUTO PRIVATE LIMITED [Not available for efiling] CIN = U34300DL1988PTC032426

Company & Directors' Information:- H B AUTO (INDIA) PRIVATE LIMITED [Active] CIN = U50401OR1988PTC002075

Company & Directors' Information:- S B G AUTO PRIVATE LIMITED [Strike Off] CIN = U50101MH2006PTC158566

Company & Directors' Information:- O P AUTO PRIVATE LIMITED [Active] CIN = U51103DL2008PTC181391

Company & Directors' Information:- D K S AUTO PVT LTD [Strike Off] CIN = U34300DL2001PTC111465

Company & Directors' Information:- C L K AUTO PRIVATE LIMITED [Strike Off] CIN = U34300DL2003PTC118551

Company & Directors' Information:- K B H AUTO PRIVATE LIMITED [Strike Off] CIN = U74899DL2000PTC107258

Company & Directors' Information:- AUTO INDIA LIMITED [Not available for efiling] CIN = U99999MH1948PLC006176

Company & Directors' Information:- R K AUTO INDIA PVT LTD [Strike Off] CIN = U99999DL2000PTC901836

    Ex. Appeal Nos. 50809, 51323-51324 of 2018 & Final Order Nos. 53087 - 53089 of 2018

    Decided On, 09 October 2018

    At, Customs Excise amp Service Tax Appellate Tribunal Principal Bench New Delhi


    For the Appellant: Sagar Kulkarni, Advocate. For the Respondent: H.C. Saini, AR.

Judgment Text

Bijay Kumar, Technical Member.

1. The present appeals are directed against the Order-in-Appeal No. IND-EXCUS-000-APP-256-258-17-18 dated 25.10.2017 passed by the Commissioner (Appeals), CGST & C. Ex., Indore wherein he has upheld the order passed by the primary adjudicating authority. In the impugned order, the Commissioner (Appeals) has held that tractor cess is imposable on the parts and accessories of the tractors in terms by Notification dated 06.09.1985 issued by the Department of Heavy Industries, New Delhi amended by Notification dated 12.11.1993.

2. Brief facts of the case are that the appellant was issued show cause notice dated 01.07.2014 wherein it was alleged that the appellant has cleared parts of the tractors during the period 2009 to March 2010 and did not pay tractor cess and hence contravened the provisions of Section 9 (1) of the Industrial (Development and Regulation) Act, 1951 read with Ministry of Industry SO No. 55(E) dated 19.01.1993. According to Rule 2 of the Tractor Cess Rules, 1992, the provisions of the Central Excise and Salt Act, 1944 and the Rules made there under has been made applicable for the purpose of levy and collection of tractor cess and hence the provisions of section 11A of the Central Excise Act, 1944 equally applicable in this case. It was alleged that the appellant by not paying the Tractor cess has contravened the provision of Rule 6 of the Central Excise Rules, 2002 read with Rule 3 of the Tractor Cess Rules, 1992 with intention to evade tax and therefore extended period of limitation was also applied as per Central Excise Act (supra).

3. Ld. Advocate appearing on behalf of the appellant submitted that on perusal of the notification regarding imposition of tractors cess, it is evident that cess is leviable on tractor and not on the parts, components and accessories thereof to tractor cess as the Government of India has not notified the same by the independent notification. It is also impressed upon by the ld. Advocate that the tractor cess is applicable to the tractors only and is not leviable to parts and accessories thereof. In support of the argument, he has relied upon the case laws in the case of CCE, Jamshedpur v. Tata Motors Ltd. -2016 (336) ELT208 regarding the imposition of automobile cess along with the other decision namely S. M. Kannappa Automobiles P. Ltd. v. CCE, Bangalore - 2008 (224) ELT 467 (Tri. Bang.). He also referred to Circular No. 41/88, dated 31.08.1988 issued by the Ministry of Finance, New Delhi regarding levy of cess on automobiles consequent upon the introduction of new Central Excise Tariff, 1985. It has been clarified in the impugned circular that - "The matter has been referred to Administrative Ministry who have intimated that the intention behind the notification levying the cess is to realise such levy from the vehicle manufacturers and not from the body builders. Further, the provision of IDR Act, 1951, under which the notification levying the cess has been issued, provides that the rate of cess shall not in any case exceed two annas per cent of the value of the goods. If the cess is levied in line with the Excise Tariff Act, 1985, this would exceed the maximum rate of /th per cent prescribed in the IDR Act. Therefore, the cess may continue to be levied and collected on the vehicles in the condition they are cleared from the premises of the manufacturers and no cess should be levied again in case the body on the chassis is built by an independent body builder on the cess paid chassis".

3.1 It was therefore argued by the ld. Advocate that the ratio laid down in the aforesaid judgments are mutatis-mutandis applicable for imposition of tractor cess on the parts, components and accessories of tractor is to be treated at par with that of automobile cess and the levy on the component and part of the automobile. He further stated that Commissioner (Appeals) has not considered the relevant provision of the IRDA Act regarding the imposition of cess on the tractor notifications in proper perspective and not decided the issue regarding the application thereof on the parts/ components of tractor.

4. On the other hand, ld. AR appearing for the Revenue reiterated the ground contended in the aforesaid order.

5. Heard the parties and perused appeal record.

6. The issue before us is to decided as to whether the tractor cess is leviable on the part and component of the tractor cleared by the appellant. After going through the case laws cited and circular issued by the Ministry of Finance, it is clear that part and accessories etc. of the tractor cannot be compared with that of the tractor itself. Therefore, the tractor cess is not leviable t

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hereon in terms of Notification (supra). For the aforesaid conclusion, we also draw our support to CBEC Circular (supra) in the case of parts and accessories of the automobile which clearly goes in favour of the appellant. We are conscious of the fact that aforesaid circular is with reference to automobile cess but the principle enunciated there is squarely applicable in the instant case. 7. In view of the above, we set aside the impugned orders and allow appeals with consequential relief, if any.