2007 (9) TMI 478 - AT - Central Excise

Summary

Issues:
1. Classification of wax moulds under Central Excise Tariff Act.
2. Benefit of Notification No. 67/95-C.E. dated 16-3-95.
3. Marketability of "wax tree" for excisability determination.

Classification of Wax Moulds:
The appellants, engaged in manufacturing gold jewellery, faced classification issues regarding wax moulds used in the manufacturing process. The original authority classified the wax moulds as goods under heading 96.02 of the Central Excise Tariff Act, imposing duty. However, the Commissioner (Appeals) remanded the matter to consider the assessee's claim for exemption under Notification No. 67/95-C.E. The appellate tribunal set aside the lower authorities' orders, directing a fresh examination of the marketability issue in light of binding case law.

Benefit of Notification No. 67/95-C.E.:
The appeal involved a challenge to the Commissioner (Appeals) order, which upheld a duty demand against the assessee for the period March to May 1999. The Assistant Commissioner's decision was based on the demand of duty, which was confirmed by the Commissioner (Appeals). The tribunal's decision to remand the case for fresh consideration also applied to this issue, allowing the assessee an opportunity to present their claim for exemption from duty on the wax moulds.

Marketability of "Wax Tree":
The crucial issue of whether the "wax tree" was marketable, a prerequisite for excisability, was not addressed by the lower authorities. The Commissioner of Central Excise, Chennai-III, in a separate order, found the item to be non-excisable due to lack of marketability. The tribunal emphasized the need to reexamine the marketability issue in line with established case law, as neither the original authority nor the Commissioner (Appeals) had correctly assessed this aspect. Consequently, the tribunal remanded the case for a fresh determination, considering the marketability aspect.

In conclusion, the appellate tribunal set aside the lower authorities' orders on the classification and exemption issues related to wax moulds, directing a reevaluation of the marketability of the "wax tree" to determine its excisability status. The tribunal stressed the importance of addressing the marketability aspect in line with legal precedents and granted the assessee an opportunity to present their case while ensuring compliance with due process.