2018 (11) TMI 828 – CESTAT NEW DELHI – TMI – Levy of Tractor cess on the parts and accessories of the Tractors – Notification dated 06.09.1985 – 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 – Held 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 – Circular No. 41/88, dated 31.08.1988 issued by the Ministry of Finance, New Delhi regarding levy of cess on automobiles also goes in favor of appellant – appeal allowed – decided in favor of appellant. – Ex. Appeal No. 51888 of 2018 – Final Order No. 53213/2018 – Dated:- 22-10-2018 – Mr. Anil Choudhary, Member (Judicial) And Mr. Bijay Kumar, Member (Technical) Sh. R. K. Ambwani, Advocate for the appellant Sh. H. C. Saini, AR for the Respondent ORDER Per: Anil Cho
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ntral 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 are 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 . As the Government of India has not notified the same by the independent notification. It is also impressed upon by the ld. Advocate that the tractor cess is applicable to the tractors only and
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d 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 for 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, Notification regarding the imposition of cess on the tractor, in proper perspective and not d
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