2008 (4) TMI 564 - AT - Central Excise

Summary

Issues:
Claim of duty exemption on Ethanol Blended Motor Spirit under Central Excise Tariff Act, 1985.

Analysis:
The appellant, a PSU unit, sought exemption from duty on Ethanol Blended Motor Spirit, a product classified under Chapter Heading No. 27.10 of the Central Excise Tariff Act, 1985. The appellant claimed the benefit of Notification No. 15/2003 and 12/2004 dated 4-2-2004 and cleared the product without duty payment. However, the Revenue demanded duty citing contravention of Central Excise Rules, 2002. The appellant argued that the product was exempted, and no duty liability should be imposed. Despite their contentions, the demands were upheld. The appellant later pointed out that the Government had issued Notification No. 25/2006-C.E. (N.T.) dated 20-11-2006 under Section 11C of the Central Excise Act, exempting duty on the product.

The Commissioner, through the learned SDR, acknowledged the said notification and recommended allowing the appeal based on the exemption granted under the Notification dated 20-11-2006. Upon reviewing the submissions and the notification, the Tribunal observed that the Government had indeed exempted the levy of duty on the product in question. Consequently, the Tribunal allowed the stay application and the appeal, thereby setting aside the demands for duty on Ethanol Blended Motor Spirit.

In conclusion, the Tribunal ruled in favor of the appellant, recognizing the duty exemption provided by the Government through Notification No. 25/2006-C.E. (N.T.) dated 20-11-2006 under Section 11C of the Central Excise Act. The judgment emphasized the importance of adhering to the provisions of such notifications in determining the applicability of duty exemptions, ultimately leading to the allowance of the appeal and the stay application.