CCE Vs. AMAR COACH BUILDERS

JUDGEMENT

(1.) THE respondent has been building bodies on motor vehicle chassis. Disputes arose with the Revenue as to whether duty was payable by the appellant in regard to vehicle made as well as scrap arising in the body building. Show -cause notices were issued.

(2.) IN adjudication, the Commissioner held in favour of the assessee in regard to both vehicles built as well as scrap. Finding was that vehicle remains exempt under Notification No. 27/02 dated 23/07/2002. In regard to scrap, it was held that such scrap remained exempt under Notification No. 89/95 dated 18/5/95.

(3.) IN the present appeal, the contention of the Revenue is that the exemption for scrap under Notification No. 18/9 of 1985 was in regard to scrap arising in the manufacture of exempted goods or goods which were liable to nil rate of Duty. The contention of the Revenue is that there was no such exemption notification in regard to the body built. It is being pointed out that exemption No. 27 dated 23/07/2002 was an order issued under 11C of the Central Excise Act, and that such an order is not an order of exemption from levy of duty.