TATA MOTORS LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE issue involved in the present case is whether Cess would be applicable on the Tractors cleared by the appellant during the period of Jun 2001 to Dec 2001. The appellant's contention is that in their sister company's case CESTAT vide order No. A/428 -432/08/C -I/EB, dated 8 -5 -2008 has held in favour of them. Ld. Counsel also submitted that Hon'ble High Court of Himachal Pradesh in the case of Indo Farm Tractors & Motors Ltd. v. UOI [2008 (222) E.L.T. 184 (H.P.)] has held that Automobile Cess is not applicable on tractors, the said order was upheld by the Hon'ble Supreme Court. Ld. Counsel also submitted that in view of the said position the appeal may be allowed.

(2.) LD . AR on the other hand submitted that Cess is leviable under Section 9 of the IDRA Act. He further submitted that Cess is applicable on the goods specified in the schedule. Further schedule of IDRA classified different goods under different headings. Serial No. 7 covers various equipments used in the transportation industries and covers 7 categories of equipments, the Serial No. 7(7) even covers items such as fork lift trucks and the like. Serial No. 10 covers agricultural machinery and tractors specifically listed in Serial (1). He further submitted that Hon'ble High Court of Himachal Pradesh was not made aware that there is a Cess on Tractor, rate of Cess is 1/8% which is applicable for other automobiles as well. Ld. AR submitted that Board's Circular No. , dated 4 -3 -2010 was issued to clarify the position, consequent to the judgment of Hon'ble High Court of Himachal Pradesh (supra). Ld. AR further submitted that in the Tribunal's judgment quoted by Ld. Counsel for the appellant, the demand was issued under the Tractor Cess and they took the plea that demand is confirmed as automobile Cess and now in the present case contrary stand. We have considered the rival submissions. It is observed that both the Automobile Cess and Tractor Cess are leviable at the rate of 1/8% and both are covered by Section 9 of the IDRA Act, 1951. We also note that consequent to the decision of Hon'ble High Court of Himachal Pradesh in the case of Indo Farm Tractors & Motors Ltd. (supra) position has been clarified by the Board vide Circular No. , dated 4 -3 -2010 as under: