Customs, Excise and Gold Tribunal - Delhi
Commissioner Of Central Excise vs Concept Engineers (P) Ltd. on 17 November, 1999
Equivalent citations: 2001(134)ELT136(TRI-DEL)
ORDER Lajja Ram, Member (T)
1. In this appeal by the Revenue, the matter relates to the duty liability when toilet cabins, sewage tank and fluid tank are installed in duty paid Trailers. There is no dispute that the Trailer has already suffered duty in the hands of the suppliers under Heading 8716.00 applicable for Trailers. The respondents had fixed toilet cabins, sewage tanks and fluid tanks in such duty paid trailers. The Assistant Collector of Central Excise who had adjudicated the case had held that toilet cabins, sewage tanks and fluid tanks on duty paid trailers were classifiable under sub-heading 8716.00 attracting duty at the rate of 20% ad valorem. On appeal, the Collector of Central Excise (Appeals), Pune set aside the order of the Assistant Collector and allowed the appeal.
2. When the matter was called no one appeared for the respondents M/s. Concept Engineers (P) Ltd. They had prayed for adjournment. On going through the impugned Order-in-Appeal we consider that this matter could be disposed of even in the absence of the respondents.
3. We have heard Shri V.M. Udhoji, Learned DR and have gone through the facts of the case. The Collector of Central Excise (Appeals) had held as under :
"I have carefully considered the submissions made by the appellants. It is an admitted fact that the appellants are purchasing duty paid trailers either from the market or the same is supplied to them by their customers. Therefore what has been cleared from the factory of manufacture was a trailer and has discharged its duty as a trailer. The activity of building toilet cabins, sewage tank, fluid tank etc. being in the nature of body building activity, the same cannot be considered as amounting to manufacture as this does not bring into existence any new product having a distinctive name, character and use. My view finds support from the decision of the Punjab and Haryana High Court in the case of Union of India v. Darshansing Pavitrasing - 1990 (47) E.L.T. 532 and the Hon'ble Tribunal in the case of Malwa Motor Body Works v. Collector of Central Excise - 1989 (44) E.L.T. 653 (Trib), Rajasthan Coach Builders (P) Ltd. v. Union of India - 1992 (58) E.L.T. 471. In all these cases it has been held that building body on motor vehicles cannot be considered as manufacture of motor vehicle. It is only after insertion of chapter note 3 under chapter 87 in July 1991 that the body building activity has been considered as amounted to manufacture but even according to this chapter note, the same does not apply to the trailers falling under heading 87.16. Similarly conversion of duty paid inputs into FRP jeep has been held as not amounting to manufacturing of motor vehicle. Based on all these decisions, I am in agreement with the appellants' view that building, of toilet cabins, sewage tank, fluid tank on duty paid trailer cannot amount to manufacture of trailers chargeable to duty under chapter heading 8716. The Assistant Collector can however, examine its classification under chapter heading 94.06 as a prefabricated structure.
In view of this, I set aside the order of the Assistant Collector and allow the appeal."
4. There is no dispute that Trailers had already discharged duty liability. The fixation of the above items in the Trailers, in our view, does not change the character of the Trailers as such. We find force in the arguments of the Collector of Central Excise (Appeals). We do not find any merit in this appeal filed by the Revenue and the same is rejected.
5. Ordered accordingly.