2002 (1) TMI 1239 - AT - Central Excise

Summary

Issues:
1. Correction of error in Tribunal's order regarding money credit availability for ethyl alcohol used in the manufacture of ethyl acrylate.
2. Classification of ethyl acrylate under Heading 39.06 and eligibility for exemption notification.
3. Whether the amendment made in 1990 regarding classification of ethyl acrylate under Heading 29.16 or Heading 39.06 was clarificatory and retrospective in nature.

Analysis:
1. The Tribunal's order was challenged for not considering that ethyl acrylate is a monomer and thus not classifiable under Heading 39.06 meant for polymers. The appellant argued that this mistake should be corrected as per the Supreme Court's judgment in Jain Engineering Company v. CCE - 1987 (32) E.L.T. 3.

2. The Tribunal noted that the 1990 amendment did not remove Heading 39.06 for ethyl acrylate but added Heading 29.16, indicating ethyl acrylate could be classified under either. However, the claim of a mistake was refuted on the grounds that the classification issue was not apparent on the record, and no evidence supporting ethyl acrylate being a monomer was presented during the proceedings.

3. The Tribunal concluded that there was no mistake in the order, as the amendment did not clearly indicate that ethyl acrylate could only be classified under Heading 29.16. The exemption notification must be strictly construed, following the Supreme Court's precedent in Bombay Oil Industries. Therefore, ethyl acrylate utilized in manufacturing ethyl alcohol was correctly classified under Heading 29.16, and the benefit of the exemption was available from that date onwards, without retrospective application.

4. The Tribunal dismissed the application, emphasizing that the amendment did not preclude the availability of the exemption to ethyl acrylate manufactured before the amendment date and classified under Heading 29.16. The decision was based on the strict construction of the exemption notification and the classification criteria under the tariff headings.

This detailed analysis of the judgment from the Appellate Tribunal CEGAT, Mumbai, provides a comprehensive overview of the issues involved and the Tribunal's reasoning in addressing each point raised by the appellant.