2008 (1) TMI 753 - AT - Central Excise

Summary

Issues involved:
1. Marketability of intermediate goods - HIP Sheets
2. Eligibility for the benefit of SSI Notification

Analysis:

Marketability of intermediate goods - HIP Sheets:
The case involved a dispute regarding the marketability of intermediate goods, specifically HIP Sheets. The Commissioner (Appeals) set aside the Original Order on the grounds that the intermediate goods were not marketable, making the assessee eligible for the benefit of the Small Scale Industries (SSI) Notification. The Revenue contended that the HIP Sheets were marketable and that the assessee was not eligible for the SSI Notification. However, upon examination, it was found that the Revenue failed to provide any evidence of the marketability of the intermediate goods. The Revenue claimed that the HIP Sheets could be sold in the market but did not present any proof to support this assertion. The Commissioner noted that the Revenue could not obtain a comparable price and valued the goods based on a cost construction method, indicating that the goods were not actually sold in the market. Consequently, the Tribunal concluded that the Revenue did not meet its burden of proving the marketability of the HIP Sheets. The Commissioner's decision to grant the SSI exemption was upheld, and the appeal by the Revenue was rejected.

Eligibility for the benefit of SSI Notification:
Regarding the eligibility for the benefit of the SSI Notification, it was determined that during the relevant period, two notifications were available, namely Notification No. 5/98 and Notification No. 8/98. The appellants had the option to choose the more beneficial notification for their commodity, and they opted for the one that was advantageous to them. As a result, the question of examining the entitlement of SSI benefits did not arise. The Tribunal affirmed the appellants' right to select the notification that provided them with the most benefit, thereby dismissing any challenge to their entitlement to the SSI benefits.

In conclusion, the Tribunal found that the Revenue had not substantiated the marketability of the intermediate goods and upheld the Commissioner's decision to grant the SSI exemption to the assessee. The appeal by the Revenue was dismissed, and the Tribunal pronounced its decision in open court.