Custom, Excise & Service Tax Tribunal
Advance Diesel Engines Private Limited vs Rajkot on 3 July, 2018
CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL,
West Zonal Bench, Ahmedabad
-ooOoo-
Appeal No.: E/1176/2010-DB
Arising out of OIO/OIA no.: 290-2010-COMMR-A--CMC-RAJ Dated
29.06.2010
Advance Diesel Engines Pvt. Ltd. - Appellant(s)
Vs
C.C.E. & S.T. Rajkot - Respondent(s)
Represented by:
For Applicant(s) : Shri P.V. Sheth (Advocate) For Respondent(s) : Ms. Nitina Nagori, Dy. Commr (A.R.) CORAM :
Shri Ramesh Nair, Hon'ble Member (Judicial) Shri Raju, Hon'ble Member (Technical) Date of Hearing/ Decision: 03.07.2018 ORDER No. A/11425/2018 Per : Ramesh Nair , The brief facts of the case are that the appellant is engaged in the manufacture of engines. They are supplying engines to M/s. Kirloskar Oil Engine Ltd. on payment of duty. After use of engines by M/s Kirloskar which is defective, the same is given to the appellant for repairing for which the appellant is raising debit notes. The department has demanded duty on the amount of debit notes which is for repairing of old and used engine on the ground that it is an additional consideration.
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2. Sh. P.V. Sheth, Ld. Counsel appearing on behalf of the appellant submits that this repairing is in respect of used, old and defective engines which has nothing to do with the manufacturing activity of the new engines and therefore, it is not an additional consideration towards any supplies of manufactured goods. He placed reliance on this tribunal's judgment in the case of Indian Card Clothing Company vs Commissioner of Excise, Pune-I 2017 (5) G.S.T.L. 190 (Tri.- Mum).
3. Ms. Nitina Nagori, Ld. Deputy Commissioner (AR) appearing on behalf of the Revenue reiterates the finding of the impugned order. She placed reliance on the judgment of Hon'ble Supreme court in the case of Collector of Central Excise Chandigarh Vs Eicher Tractors Ltd. 2004 (164) E.L.T. 129 (S.C.).
4. On careful consideration of submissions made by both the sides and perusal of records, we find from the records that the debit notes raised by the appellant is in respect of the engines supplied more than 3 years back and subsequently they have received the said engine as defective only for repair for which debit note was raised. This activity is limited to repair of old and used engines, which has nothing to do with the manufacturing of the engine which was supplied long back. Therefore, the debit not is for repair which cannot be treated as additional consideration towards the sale of the engine which was made long back. Accordingly the appellant is not liable for duty. The judgement in the case of Indian Card Clothing Company ltd. (supra), support the case of appellant. As regard the judgement cited by the Ld. AR, the same is in respect of the manufactured goods supplied which is not applicable to the facts of the 3 | Page E/1176/2010-DB present case. Accordingly the impugned order is set aside, appeal is allowed.
(Dictated and pronounced in the open Court)
(Raju) (Ramesh Nair)
Member (Technical) Member (Judicial)
Diksha