2006 (8) TMI 375 - AT - Central Excise

Summary

Issues:
Interpretation of Notification No. 8/98-C.E. regarding exemption eligibility for Brass Sheets and Circles under Chapter heading No. 7409.20.

Analysis:
The present appeals were filed by the Revenue against the Commissioner (Appeals) order, which granted exemption to Brass Sheets and Circles falling under Chapter heading No. 7409.20 based on Notification No. 8/98-C.E. The Commissioner held that the notification excluded only sheets and circles of copper intended for use in manufacturing utensils or handicrafts, and since brass is an alloy of copper and zinc, it should not be denied the benefit of the exemption.

The Tribunal referred to a previous decision in the case of Commissioner of Central Excise, Jaipur-II v. Mewar Bartan Nirman Udyog [2002 (146) E.L.T. 644 (Tri.-Delhi)], where a similar issue was addressed. The Tribunal in that case interpreted an identical entry in Notification No. 3/2001 and concluded that the exclusion from the notification applied only to trimmed and untrimmed sheets and circles of copper, not to brass sheets or circles, which are alloys of copper and zinc. Therefore, the Tribunal held that brass circles were eligible for the exemption as the notification specifically excluded only copper circles.

In the current case, it is undisputed that the sheets and circles in question are made of brass, not copper alone. Following the precedent set in the earlier decision, it was concluded that the exemption was rightly extended to brass sheets and circles by the Commissioner (Appeals). Consequently, the appeal filed by the Revenue was rejected.

The judgment was pronounced in court on 25-8-2006 by Ms. Archana Wadhwa, Member (J) of the Appellate Tribunal CESTAT, Mumbai.