Case Law Details
T.M. Tyres Limited Vs Commissioner of Central Excise (CESTAT Hyderabad)
It is an admitted fact on record that the appellant is engaged in the manufacture of Butyl rubber inner tubes and such product by itself is separately identifiable and is a distinct Marketable product. It cannot be said that the product manufactured by the appellant is exclusively meant for the automobile industries for use as parts and components and are not capable for use in other purposes. Since the goods manufactured by the appellant are meant for use by other manufacturers also, in our opinion, such manufactured goods cannot be subjected to levy of central excise duty under Section 4A of the Central Excise Act, 1944.
FULL TEXT OF THE CESTAT JUDGEMENT
1. This appeal is directed against the impugned Order-in-Original No. 12/2009(C.E.)-Commr. dated 14.08.2009 passed by Ld. Commissioner of Customs & Central Excise, Hyderabad.
2. Briefly stated, the facts of the case are that the appellant herein is engaged in manufacture of Butyl rubber inner tubes, classifiable as excisable goods, under Central Excise Tariff Act, 1985. The appellant discharges central excise duty liability on the assessable value determined, under Section 4 of the Central Excise Act, 1944. The Central Government vide Notification No. 2/2006-CE(NT), dated 01.03.2006 has notified certain goods, as the goods to which the provisions of Section 4A ibid shall apply. The said Notification was amended vide Notification No. 11/2006-CE(NT), dated 29.05.2006 in inserting “Parts, components and assemblies of automobiles” in order to fall under the provisions of Section 4A ibid. Based on the said notification, the department initiated show cause proceedings against the appellants to deposit the Central Excise Duty under Section 4A ibid based on the MRP rates. The matter was adjudicated by the impugned order dated 14.08.2009, wherein the Ld. Commissioner of Central Excise has confirmed differential central excise duty of Rs.78,64,344/- under section 11A of the Act along with interest and also imposed penalty of Rs. 2.00 lakhs under Rule 25(1) of the Central Excise Rules, 2002.
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