2004 (5) TMI 493 - AT - Central Excise

Summary

Issues:
Challenge to duty demand under show cause notice; Eligibility for exemption under Notification No. 14/92-C.E.; Relief granted by Commissioner; Challenge to relief granted; Interpretation of conditions for exemption.

The Appellate Tribunal CESTAT, Bangalore, in the case, dealt with an appeal by the Revenue against an order-in-original related to a duty demand of approximately Rs. 27 lakhs proposed under a show cause notice for HDPE fabrics manufactured by the appellant. The Commissioner of Central Excise, Guntur, dropped the duty demand in excess of Rs. 7,20,940/- citing eligibility for exemption under Sl. No. 37 of Notification No. 14/92-C.E. dated 1st March, 1992. The Commissioner also provided relief regarding Modvat claim and cum-duty value treatment of the sale price, which was challenged in the appeal.

Upon reviewing the records and hearing both sides, the Tribunal addressed the challenge to the relief granted under Notification No. 14/92-C.E. The appellant contended that the exemption was only applicable if the goods were manufactured exclusively from specified headings, which was not the case here. However, the Tribunal found this objection unjustified as the conditions for exemption did not require exclusive use of goods falling under specific headings. The Tribunal also emphasized that the total price realized should be considered as cum-duty price when goods subject to duty are reassessed, supporting the appellant's claim for Modvat Credit based on established legal principles.

The Tribunal concluded that the appeal lacked merit and rejected it based on the interpretation of the conditions for exemption and the principles governing the determination of cum-duty price. The decision affirmed the Commissioner's ruling on the duty demand and the relief granted, highlighting the importance of adherence to legal provisions and established practices in excise duty matters.