COMMISSIONER OF CENTRAL EXCISE Vs. MARUTI UDYOG LTD

JUDGEMENT

(1.) The Revenue has filed the present appeal under Section 35G of the Central Excise Act, 1944 (for brevity "Act") before this Hon'ble Court challenging the Final Order dated 8-6-2004 of the Customs Excise and Service Tax Appellate Tribunal (for short "CESTAT") on the ground that the following questions of law arise out of the Final Order dated 8-6-2004 passed by the CESTAT:

(2.) M/s. Maruti Udyog Ltd. (hereinafter referred to as the respondents) is engaged in the manufacture of motor vehicles falling under Chapter 87 of First Schedule to Central Excise Tariff Act, 1985. The vehicles are cleared for home consumption on payment of appropriate duty of excise. The vehicles are also cleared for export under bond.

(3.) Some times, after clearance of the vehicles from the factory but before the vehicles reach the destination viz. dealer's premises or port through which export is to be made, transit damages occur to the vehicle. Various reasons due to which vehicles got damaged in transit are collusion of truck/trailers carrying vehicles with other vehicles, over turn of truck/trailers, truck/trailers carrying vehicles hitting bush of trees etc. If damages/defects found are repairable at the dealer's end, the same are not returned to the respondents factory but are repaired by dealers themselves. It is categorically submitted by the counsel for the respondent that only in cases where defects are of such a nature that the same cannot be repaired by dealers, vehicles are brought back by the respondents to their factory for repair. The damages caused to vehicles are like damages to door, body shell etc. and such damages are essentially of a cosmetic nature like dents, scratches, fading of the paint finish to the bodies of the vehicles etc. The respondents replace body shells of the damaged vehicles since they are a quality conscious company and even after repair, they want to provide a brand new car to their customers. Except for these damages of cosmetic nature, all major parts of vehicle like engine, tyres, etc. remain intact and as good as new parts. While carrying out repair, the respondents replace few parts like fasteners, rubber parts etc. in all cases since these are low value parts.