2003 (9) TMI 687 - AT - Central Excise

Summary

Issues: Classification of processed pitch oil mixture or processed tar under erstwhile tariff heading No. 11(5); Availability of benefit under Notification No. 121/62-C.E.

The judgment by the Appellate Tribunal CESTAT, Kolkata involved an appeal by the Revenue against the rejection of their application by the Commissioner (Appeals) challenging the dropping of charges against the respondents concerning the classification of processed pitch oil mixture or processed tar under the erstwhile tariff heading No. 11(5). The central issue was the availability of the benefit under Notification No. 121/62-C.E., dated 13-6-62 for the said products. Both the Revenue and the respondents agreed that the products fell under the specified tariff heading, but the Revenue contended that the benefit of the notification was not applicable, contrary to the findings of the lower authorities in favor of the respondents.

During the proceedings, it was noted that the Revenue acknowledged that the Tribunal's previous orders in the case of M/s. SAIL favored the respondents on an identical issue. However, the Revenue argued that since appeals had been filed before the Hon'ble Apex Court regarding the Tribunal's orders in the M/s. SAIL case, the impugned orders were not tenable. The Revenue failed to confirm whether the Tribunal's orders had been stayed by the Hon'ble Supreme Court. The Commissioner (Appeals) highlighted that the Department did not provide any evidence, including test reports, to demonstrate that the product did not meet the conditions for exemption under the relevant Notification. The Commissioner also referred to trade notices from the Vadodara Commissionerate. The Revenue did not refute the Commissioner's observations regarding the test report in their appeal memo. Consequently, the Tribunal found no merit in the Revenue's appeal and dismissed it.

In conclusion, the Appellate Tribunal CESTAT, Kolkata upheld the lower authorities' decision in favor of the respondents, emphasizing the lack of evidence presented by the Revenue to challenge the eligibility of the processed pitch oil mixture or processed tar for the exemption under Notification No. 121/62-C.E. The Tribunal's judgment highlighted the importance of substantiating claims with concrete evidence in matters of classification and benefit entitlement under relevant notifications.