2005 (12) TMI 476 - AT - Central Excise

Summary

Issues involved:
1. Eligibility of SSI exemption notification for branded products.
2. Misconstrual of provisions under Kar Vivad Samadhan Scheme.
3. Examination of final certificate under KVS Scheme for appeal resolution.

Eligibility of SSI exemption notification for branded products:
The appellants were manufacturing branded products "Bisleri" Mineral water and claimed the benefit of SSI notification. The department issued a show cause notice challenging the eligibility of the SSI exemption notification for branded products, demanding duty and imposing penalties. The adjudicating authority confirmed the demand and penalties, leading to the appellants appealing against the original order. The appellate authority initially dismissed the appeal, prompting the appellants to approach the Tribunal. The Tribunal remanded the matter back to the Commissioner (Appeals), who subsequently dismissed the appeal, leading to the current appeal.

Misconstrual of provisions under Kar Vivad Samadhan Scheme:
The appellate authority misinterpreted the provisions under the Kar Vivad Samadhan Scheme. The appellant had produced Certificate 2B dated 4-3-99, which was a determination of liability by the Designated authority under the scheme. The appellants were required to follow the directions and deposit the determined amount within 30 days as per Form 2B. Failure to comply would result in the abatement of their declaration under KVSS. The appellate authority erroneously concluded that an order under Section 90(1) of the Finance Act, 2000 would render the appeal withdrawn under Section 90(4. This was deemed incorrect as non-compliance with the determination would nullify the KVSS option, necessitating the appellants to proceed by filing an appeal. The failure to consider the final acceptance certificate rendered the appellants without a remedy, highlighting the appellate authority's oversight in the previous order.

Examination of final certificate under KVS Scheme for appeal resolution:
In another appeal by the appellants concerning the same issue, the appeal was allowed for remand to the jurisdictional Commissioner, Kolkata-V, to issue an appropriate order under the KVS Scheme. It was crucial to await the Commissioner's decision under KVSS before disposing of the current appeal. Consequently, the order in appeal was set aside, and the appeal was allowed for remand to the appellate authority to reexamine the issue after granting the appellants an opportunity to produce the final certificate under the KVS Scheme. The appeal was allowed for remand, emphasizing the necessity of considering the final certificate for a comprehensive resolution.

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