2005 (4) TMI 367 - AT - Central Excise

Summary

Issues:
- Duty demand on 'Digesters' for the period 1990-1993
- Challenge of duty liability on appellants who did not manufacture the digesters

Analysis:
1. The appeal was against an order demanding duty from the appellants on 'Digesters' for the period 1990-1993. The appellants contended that they did not manufacture any of the digesters, which was noted by the lower appellate authority to have been manufactured by other parties at the appellants' site. The Commissioner (Appeals) did not challenge this finding, leading to the argument that no duty liability could be imposed on the appellants. The SDR reiterated the findings of the Commissioner (Appeals) but lacked a copy of the Order-in-Original. The Tribunal, after examining the records and submissions, decided to dispose of the appeal summarily.

2. A perusal of the show cause notice revealed that the allegations were relevant only to the manufacturer of the digesters. The impugned order confirmed that the digesters in question were manufactured by various other parties at the appellant's site, a fact not contested by the Revenue. The demand of duty by the Commissioner (Appeals) on the appellants was found to be incompatible with his own finding regarding the actual manufacturers of the digesters. Therefore, imposing duty on a party that did not manufacture the digesters was deemed unsustainable. Consequently, the Tribunal set aside the impugned order and allowed the appeal, granting consequential relief to the appellants. The judgment was dictated and pronounced in open court.