2008 (3) TMI 554 - AT - Central Excise

Summary

Issues:
1. Clarification on the scope of clearance for pursuing the appeal and restoration of appeals.
2. Interpretation of Notification No. 6/2002 regarding exemption from duty.
3. Classification of plates under Chapter 72 of the Tariff and their eligibility for exemption.

Issue 1:
The judgment addresses the issue of clearance for pursuing the appeal and the restoration of appeals. The Tribunal notes that the clearance from COD was only for Appeal No. 1302/06, but the restoration application resulted in the restoration of two appeals - Appeal No. 1301-1302/06. The Tribunal clarifies that the restoration is to be in respect of Appeal No. E/1302/06 only, as a separate restoration application is pending for Appeal No. E/1301/06.

Issue 2:
Regarding the interpretation of Notification No. 6/2002 for exemption from duty, the applicant filed a stay application in Appeal No. 1302/06 seeking a waiver of pre-deposit of duty and penalty. The demand was confirmed after denying the benefit of the notification, which provides exemption from duty on specified equipment procured for specific projects. The applicant argued that plates, used in the fabrication of steel structures for the traction system equipment, are covered under the notification based on a clarification from the Department of Revenue. The Tribunal, after considering the details of items covered under the notification, finds that the steel items in question are indeed used as part of traction equipment, supporting the applicant's contention. Consequently, the pre-deposit of the duty and penalty is waived, and the stay petition is allowed.

Issue 3:
The judgment also delves into the classification of plates under Chapter 72 of the Tariff and their eligibility for exemption. The Revenue contended that plates do not qualify as items of equipment under the notification and should be classified under Chapter 72. However, the Tribunal, upon examining the usage of the steel items as part of traction equipment, determines that the applicant has a strong case, prima facie. As a result, the pre-deposit of duty and penalty is waived, and the stay petition is granted.

In conclusion, the Tribunal's judgment provides clarity on the scope of clearance for pursuing the appeal, interpretation of the exemption notification, and the classification of steel plates, ultimately leading to the waiver of pre-deposit of duty and penalty for the applicant.