2005 (1) TMI 556 - AT - Central Excise

Summary

Issues: Interpretation of Notification No. 22/1982-C.E. regarding production limit for availing concession.

In this judgment by the Appellate Tribunal CESTAT, CHENNAI, the issue involved was the interpretation of Notification No. 22/1982-C.E. concerning the production limit for availing concession by a match manufacturer. The respondents had manufactured 3052 units of matches within a specific period and cleared them under the said notification. The original authority denied the benefit by stating that exceeding the production limit of 3000 units in a month led to disentitlement for the entire financial year. The Collector (Appeals) overturned this decision, holding that the disentitlement applied only for the month in which the limit was exceeded. The appeal by the Revenue challenged this decision.

The learned JDR for the Revenue referred to previous Tribunal orders where similar issues were decided in favor of the Revenue. The Tribunal noted that the issue was indeed covered by its earlier orders, which held that if a manufacturer exceeded the production limit in any calendar month, they were not entitled to the concession for that financial year. Citing a specific case law, the Tribunal reaffirmed that the respondents were not eligible for the concession for the financial year 1992-1993 due to exceeding the production limit in September 1992. Consequently, the impugned order was set aside, and the appeal by the Revenue was allowed. The judgment reiterated the principle that exceeding the prescribed production limit in a calendar month led to disentitlement for the entire financial year under the notification.