2008 (1) TMI 761 - AT - Central Excise

Summary

Issues: Small-scale exemption availability for goods omitted from coverage under Notification No. 8/01-C.E. dated 1-3-2001 and subsequent restoration under Notification No. 47/01-C.E. dated 1-10-2001.

The appellant, a small-scale unit, manufactured parts of arms falling under sub-heading 9305.00 and supplied them to Defence Establishments. They contended that they previously enjoyed the small-scale exemption for the impugned goods. However, this exemption was not available after the issuance of Notification No. 8/01-C.E. dated 1-3-2001 as the impugned goods were omitted from coverage. Subsequently, with the issuance of Notification No. 47/01-C.E. dated 1-10-2001, the original position was restored, bringing the impugned goods back under the small-scale exemption. Citing the Bench Order in the case of Mahaprabhu Moulding Works v. C.C.Ex., Kolkata-II - 2007 (211) E.L.T. 93, the appellant argued that the exemption for the intervening period from 1-3-2001 to 30-9-2001 should be allowed.

The Tribunal heard arguments from both sides and noted that the learned D.R., Shri N.C. Chowdhury, was not aware of any appeal filed against the Order of the Bench in the case of Mahaprabhu Moulding Works. Additionally, there was no information about any contra-order issued by a superior court. The Tribunal observed that the decision in Mahaprabhu Moulding Works was based on the Hon'ble Supreme Court's ruling in the case of W.P.I.L. Ltd. v. CCE, Meerut - 2005 (181) E.L.T. 359 (S.C.), which emphasized that the exemption could not be considered withdrawn when it was the consistent policy of the Government to grant exemption. The Supreme Court held that the subsequent Notification was clarificatory and retrospective, maintaining the exemption available before the intervening period. Following this legal precedent, the Tribunal set aside the impugned Order and remanded the matter to the original authority to allow exemption for the period preceding the issuance of Notification No. 47/01-C.E. dated 1-10-2001, in line with the decisions cited.

Therefore, based on the principles established by the Hon'ble Supreme Court and applied in the case of Mahaprabhu Moulding Works, the Tribunal allowed the appeal by way of remand, directing the original authority to grant the exemption for the relevant intervening period. The decision was pronounced in the Court on 31-1-2008.