Brief of the case:
The Hon’ble Karnataka High Court in the case of M/s TVS Motors Co. Ltd. held that the automobile cess leviable under the automobile cesses rules are governed by the provisions of central excise act and rules made under the act and are in the nature of excise duty and thus, allowable as rebate under Rule 18 of Central Excise Rules,2002.
Facts of the case:
- The petitioner (TVS Motors) is engaged in the manufacture of motor cycles/two wheelers of different types falling under Chapter – 87 of the First Schedule to the Central Excise Tariff Act, 1985.The petitioners cleared the two wheelers for export to various countries and claim rebate of central excise duty paid by petitioners under Rule 18 of Central Excise Rules, 2002.
- After orders being passed by the original authority for different periods it has resulted in appeals being filed and ultimately the revisional authority (Ministry of Finance) denied the rebate of Automobile Cess, Secondary and Higher Education Cess on Automobile Cess by the revisional authority. Against such order, the petitioner filed writ petition before the High Court.
Contention of the Assessee:
- It was submitted by the learned counsel for the petitioner that Automobile Cess, Education Cess on Automobile Cess, Secondary and Higher Education Cess on Automobile Cess being one of the duties of excise being paid on the goods exported, rebate of Cess cannot be rejected on the ground that it does not find a mention in Explanation- I to Notification No.19/04-CE (NT) dated 6.9.2004. It is because the Automobile cess rules find it reference to Central Excise Act and the rules made thereunder , and therefore, such cess is also a type of central excise duty and all the provisions as applicable to levy, collection and refund to excise duty shall be applicable to automobile cess also.
- Assessee relied on the following judgments in support of his submissions:
i)Banaswara Syntex Ltd. Vs Union of India), 2007 (216) ELT 16 (Raj.)
ii)Commissioner of C.Ex., Cus. And ST. Belgaum Vs Shree Renuka Sugars Ltd.(Kar)
Contention of the Revenue:
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