EICHER MOTORS LTD. Vs. CCE

JUDGEMENT

(1.) HEARD both sides and perused the record.

(2.) MAIN issue in this appeal is the duty liability of about Rs. 7 crores (Rupees Seven Crores only) on appellant M/s Bhagirath Coach and Metal Fabricators Pvt. Ltd. That demand has been made on the basis that assessable value adopted was low, while discharging duty on motor vehicles manufactured by it.

(3.) FACTS of the case are that the applicant M/s Bhagirath Coach and Metal Fabricators Pvt. Ltd. receives duty paid chassis from M/s Asha Motors, builds body on the chassis and clears the same on payment of duty. The duty payment on the body built vehicle is on the basis of cost of production (assessable value). The appellant adopted the commercial cost of chassis for working out cost of production. But revenue seeks to adopt the excise assessable value of chassis in place of its commercial cost. Revenue's contention is that Rule 8 of Central Excise Rules provides for adopting 110% of the cost of production as assessable value of captively consumed goods and the assessable value of chassis was so re -fixed while assessing the chassis.