2018 (10) TMI 534 – CESTAT NEW DELHI – TMI – Levy of Tractor Cess – whether the tractor cess is leviable on the part and component of the tractor cleared by the appellant? – Held that:- 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 thereon in terms of Notification dated 06.09.1985.
–
CBEC Circular No. 41/88, dated 31.08.1988 in the case of parts and accessories of the automobile which clearly goes in favour of the appellant – aforesaid circular is with reference to automobile cess but the principle enunciated there is squarely applicable in the instant case.
–
Appeal allowed – decided in favor of appellant. – Ex. Appeal Nos. 50809, 51323- 51324 of 2018 – Final Order Nos. 53087–53089/2018 – Dated:- 9-10-2018 – Mr. Anil Choudhary, Member (Judicial) And Mr. Bijay Kumar, Member (Technical) For the Appellant : Sh. Sagar Kulkarni, Advocate For the Respondent : Sh. H. C. Saini,
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ctor Cess Rules, 1992, the provisions of the Central Excise and Salt Act, 1944 and the Rules made thereunder 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
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ovides 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 1/8th 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
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =