2022-VIL-597-CESTAT-DEL-CE

CENTRAL EXCISE CESTAT Cases

Central Excise – Manufacture of tools – Duty liability – Appellant has manufactured tools/dyes for manufacture of motor vehicle parts for Force Motors Ltd. – On receipt of amounts for tools/dyes as well as for manufacture of motor vehicle parts, Appellant cleared motor vehicle parts to Force Motors without payment of Central Excise duty by claiming exemption from duty in terms of Notification No.67/95-CE dated 16-3-1995 – Department issued Show Cause Notice to Appellant proposing recovery of Central Excise duty on value of manufactured tools/dyes cleared to Force Motors – Adjudicating authority confirmed demand proposed in Show Cause Notice – Whether Appellant is liable to pay Excise duty on impugned tools/dyes and benefit of Notification No.67/95 is available to Appellant – HELD - Notification No.67/95-CE only says that goods to seek exemption should be the goods manufactured by assessee and those should have been retained by assessee for further manufacture – Tools/dyes were manufactured by Appellant for manufacture of motor vehicle parts ordered/purchased by Force Motors – Tools/dyes were kept by Appellant for being consumed by Appellant for further production of motor vehicle parts – Since conditions have been complied with by Appellant, benefit of Notification is available to Appellant – Exemption from payment of duty has rightly been availed by Appellant based on said notification – Perusal of purchase orders as well as tax invoices make it clear that excise duty liability is fulfilled with respect to transaction value of motor vehicle parts – Invoice itself revealed that cost of tools/dyes received from Force Motors has been amortized by Appellant – Amortized cost of tools/dyes has already been included in cost of motor vehicles parts manufactured by Appellant – Appellant is not liable to pay Excise duty on impugned tools/dyes – Order under challenge is set aside and appeal is allowed

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