2007 (2) TMI 373 - AT - Central Excise

Summary

Issues involved: Stay of operation of Order-in-Appeal No. 26/2006-C.E. dated 26-7-2006 regarding classification of epoxy resin and ager as consumables u/s duty discharge.

Summary:

The Appellate Tribunal CESTAT, Bangalore considered the appeal regarding the classification of epoxy resin and ager as consumables u/s duty discharge. The Revenue sought a stay of operation of the Order-in-Appeal which accepted the assessee's plea that these items are consumables for goods ultimately exported. The Revenue argued that these items are raw materials and duty should be discharged on them.

The learned JDR presented arguments based on the grounds of appeal. The learned Representative referred to rulings such as Kilburn Chemicals Ltd. v. CCE and CCE, Ahmedabad v. Melamine and Fibre Boards Ltd., where it was held that certain items were consumables. He also cited a letter from the Asst. Development Commissioner declaring both items as consumables. The Commissioner (A) extensively examined the issue and applied a Board Circular to determine that the items in question are consumables. Consequently, the Tribunal found that the Revenue did not establish a prima facie case for granting a stay. The detailed order by the Commissioner (A) led to the rejection of the stay application, with the appeal to proceed in due course.

The judgment was pronounced and dictated in open Court by Dr. S.L. Peeran and Shri T.K. Jayaraman, JJ.