Hero Cycles Ltd. VS Commissioner of Central Excise, Ludhiana

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, NEW DELHI
S.S. KANG, K.D. MANKAR, JJ.
Hero Cycles Ltd. -Appellant
Versus
Commissioner of Central Excise, Ludhiana -Respondent
Final Order No. A/672/2003-NB(C) Appeal No. E/1647/2003-NB(C), 672 of 2003, 1647 of 2003
Decided On : 07-11-2003

Advocates Appeared:
Sudhir Malhotra,Charul Baranwal

ORDER

Per K.D. Mankar : The issue in the instant appeal relates to the central excise duty liability on "Tools Dies" (sub-heading No. 8207.00). The appellants manufactured the said "Tools and Dies" and used the same captively for manufacture of bicycle and parts thereof (sub-heading Nos. 8712.00 8714.00 respectively) and Rims for mopeds and Motor Cycles (sub-heading No. 8714.00). Pursuant to the contents of an audit objection, it was alleged that duty on Tools Dies manufactured by the appellants and used captively in the manufacture of bicycles and parts thereof is leviable, because the bicycle and parts thereof are chargeable to nil rate of duty and the goods captively consumed are eligible to duty exemption (under Notification No. 67/95-CE) only when the finished goods are cleared on payment of duty which is not the case. The appellants paid the duty demanded but have contested the issue before the lower authorities without success.

2. Heard both sides.

3. It is clearly established that the "Tool Dies", are covered in the category of "Capital goods" as mentioned in Notification No. 67/95-CE dated 16.3.95. The notification refers to capital goods as defined in rule 57Q. The said rule refers to goods covered by heading Nos. 82.02 to 82.11. Obviously therefore being covered by heading No. 82.07, "Tools Dies" are capital goods, also for the purpose of Notification No. 67/95-CE. The appellants have correctly pleaded that the ineligibility to duty exemption on the grounds of use of captively manufactured goods in the manufacture of fully exempt final products, applies only to "inputs". Since the "Tools Dies" are capital goods, no such disqualification is prescribed for "capital goods". In other words, despite the use of captively manufactured "Tools Dies" for manufacture of fully exempt final products, the duty concession is available.

4. We agree with the appellants and allow the appeal.

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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, NEW DELHIS.S. KANG, K.D. MANKAR, JJ.Hero Cycles Ltd. -AppellantVersusCommissioner of Central Excise, Ludhiana -RespondentFinal Order No. A/672/2003-NB(C) Appeal No. E/1647/2003-NB(C), 672 of 2003, 1647 of 2003Decided On : 07-11-2003

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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, NEW DELHI
S.S. KANG, K.D. MANKAR, JJ.
Hero Cycles Ltd. -Appellant
Versus
Commissioner of Central Excise, Ludhiana -Respondent
Final Order No. A/672/2003-NB(C) Appeal No. E/1647/2003-NB(C), 672 of 2003, 1647 of 2003
Decided On : 07-11-2003