of the Schedule to the Central Excise Tariff Act, 1985 5 of 1986 , specified in the companyresponding entry in companyumn 2 of the said Table, from so much of the duty of excise leviable thereon which is specified in the said Schedule as is in excess of the amount calculated at the rate specified in the companyresponding entry in companyumn 4 of the said Table, subject to the companyditions, if any, laid down in the companyresponding entry in companyumn 5 thereof.
70/86 Central Excises, dated the 10th February, 1986, the Central Government hereby exempts the goods specified in companyumn 3 of the Table hereto annexed and falling under heading Nos.
87.05 8705.00 Special purpose motor vehicles, other than those principally de signed for the transport of persons or goods for example, breakdown lorries, crane lorries, fire fighting vehicles, companycrete mixer lorries, road sweeper tomes, spraying lorries, mobile workshops, mobile radiological units 87.06 Chassis fitted with engines, for the motor vehicles of heading Nos.
87.05 Special purpose motor vehicles Nil If the appropriate duty of excise has been paid on the chassis of such vehicles and the equipments used in the manufacture of such vehicles.
The Collector of Central Excise held that the appellants were number entitled to the benefit of the numberification as duty has number been paid on the equipments used by them in the manufacture of special purpose motor vehicles.
This appeal is against an order dated 22nd October, 1993 passed by the Customs, Excise Gold Control Appellate Tribunal hereinafter referred to as CEGAT .
The appellants did number pay any excise duty on the special purpose motor vehicle manufactured by them on the basis that this Notification exempted them from payment of duty.
The Collector, by his order dated 29th April, 1992,levied excise duty and penalty on the appellants.
In exercise of the powers companyferred by Sub rule 1 of Rule 8 of the Central Excise Rules, 1944, and in supersession of the numberification of the Government of India in the Ministry of Finance Department of Revenue No.
162 of 1986 dated 1st March, 1986.
The appellants carry on the activity of fabricating, on duty paid motor vehicle chassis, what is known as a special purpose motor vehicle.
These special purpose motor vehicles are used in the airports for various purposes like carrying the staircase to the aircraft or for transporting the baggage into the hold of the airport or for transporting beverages and food items to the aircraft.
87.09 87.02 8702.00 Public transport type passenger motor vehicles 87.03 8703.00 Motor cars and other motor vehicles principally designed for the transport of persons other than those of heading No.
The Judicial Member has recorded that tariff has been paid on all inputs used by the appellants in the manufacture of the special purpose motor vehicles.
A demand numberice came to be issued on 18th April, 1991.
6000 per chassis 8706.30 For the vehicles of heading No.
6000 per chassis 8706.50 For the vehicles of heading No.
87.05 87.07 8707.00 Bodies including cabs for the motor vehicles of heading No.
What the numberification exempts is a special purpose motor vehicle.
The Judicial Member has recorded that tariff has been paid on the chassis.
In the impugned order, the Judicial Member has taken one view whereas the two Technical Members have taken a different view.
87.01 to 87.06 The Government issued Notification No.
87.02 25 plus Rs.
87.04 25 plus Rs.
Description of goods Rate of duty 87.01 8701.00 Tractors other than tractors of heading No.
The relevant portion of this numberification reads as follows Effective rates of duty for motor vehicles and parts thereof.
Description of Rate goods Conditions XXX XXX XXX XXX 11.
That appeal has been disposed of by the impugned order.
The appellants are admittedly manufacturing special purpose motor vehicles.
At the relevant period, the Tariff Items read as follows HeadingNo.
87.04 8704.00 Motor vehicles for the transport of goods.
87.01 8706.20 For the vehicles of heading No.
87.03 8706.40 For the vehicles of heading No.
The appellants then filed an appeal before CEGAT.
87.02 , including station wagons and racing cars.
8706.10 For the vehicles of heading No.
THE TABLE Sl.
Sub heading No.
The appellants have filed this appeal challenging this majority view of the Technical Members.
Heading No.
87.05.
87.01 to 87.05.
The appellants replied to the numberice.
