To,
Smt. Pratibha Devisingh Patil ji,
President of India,
Rashtrapati Bhawan, New Delhi 110 004
INDIA
Subject -Change in the Notification regarding Automobiles to be made effective from Dt- 01-06 instead of 27-02 and 29-04.
Dear President,
In the recent Budget Shri Vivek Johri Joint Secretary (TRU-I) vide D.O.Letter -D.O.F.No.334/3-TRU, New Delhi, dated the 28thFebruary in Para 6.11 (reproduced below for ready reference) has clarified that parts, components and assemblies of certain vehicles falling under Chapter 84 have been included in the THIRD SCHEDULE retrospectively w.e.f 27-02 and 29-04.The said retrospective amendment is to be made in the THIRD SCHEDULE w.e.f 01-06 instead of 27-02 and 29-04.
Attention is invited to the THIRD SCHEDULE to the Central Excise Tariff Act, 1985, under section 2 (f) (iii) of the central excise act, 1944 specifying goods in relation to which, packing, repacking, labeling, re-labeling, MRP declaration/alteration or treatment of Automobile Parts shall amounts to manufacture as per S. No. 100, which is inserted vide Notification No. 12 - C.E. (N.T.), dated 29-05
In Para 6.11 (reproduced below for ready reference)-
6.11 Parts, components and assemblies of vehicles falling under chapter 87 excluding vehicles of headings 8712, 8713, 8715 and 8716 were notified under section 4A of the Central Excise Act with effect from 27.02.2010. Subsequently, parts, components and assemblies of certain vehicles falling under chapter 84 were also notified under these provisions with effect from 29.04.2010. However, these goods were not simultaneously included in the Third Schedule to the CETA. These are now being included in the Third Schedule retrospectively w.e.f. 27.02.2010 and 29.04.2010 respectively.
It would not be out of place to mention here that cases involving huge amount of revenue have been registered against the parties mentioned hereunder and show cause notices for recovery of Govt revenue have been issued in respect of parts components and assemblies of automobiles.
1) M/s Terex Vectra Equipment (P) Ltd., Plot No. 22, Udyog Vihar, Greater Noida, P.O.-Surajpur, Gautam Budha Nagar (U.P.)06 case registered by THE COMMISSIONER, CUSTOMS, CENTRAL EXCISE & SERVICE TAX, C-56/42, SECTOR-62, NOIDA on dated 06/11
2) Telco Construction Equipment Co. Ltd., SPARE PARTS DEPARTMENT, Telcon General Office, C/o Telcon Premises, P O: Telco GM”s Post office, Admistrative Block-1 Jamshedpur-831010, case registered by DGCEI, kolkata on dt 19/01
3) JCB case registered by DGCEI PUNE on dt 08.07.2009
4) Action Construction Equipment Ltd case registered by THE COMMISSIONER OF CENTRAL EXCISE DELHI –IV, NEW CGO COMPLEX, NH-IV, FARIDABAD on dt on 01.12.2009
5) M/s L & T Case Equipments Pvt Ltd, - case registered BY THE COMMISSIONER, CUSTOMS, CENTRAL EXCISE & SERVICE. Tax, Indore on dt-17.12.2009
During investigation of the cases it has been categorically admitted by the suppliers of parts, components and assemblies to units mentioned hereunder that they have paid central excise duty on the MRP value of the goods supplied (from dt 01/06), therefore the same should have been cleared by the manufacturers on payment of duty.
It is felt that the retrospective amendment in the THIRD SCHEDULE should be made effective from 01-06 instead of 27-02 and 29-04 as the cases registered against the above said parties involves revenue to the tune of Crores. The retrospective amendment in the third schedule have been made effective from 27-02 and 29-04 with the sole motive to extend undue benefit to the parties/manufacturers mentioned above to escape the duty liability. The mischief done needs to be addressed immediately and the retrospective amendment must be given effect from 01-06.
Yours Sincerely
Yogendra pali
please see this video link-
http://www.youtube.com/watch? v=arVl8XVjKY4
http://www.youtube.com/watch? v=3arCCzfcA0M
Enclose-
Following link-
D.O.Letter
11 - C.E. (N.T.),
12 - C.E. (N.T.),
THIRD SCHEDULE
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