2008 (5) TMI 488 - AT - Central Excise

Summary

Issues involved: Appeals against demand of duty on HDPE tapes and penalties, competence of Commissioner to adjudicate dispute on remand, eligibility of assessee's products for exemption under Notification No. 221/86-C.E.

Competence of Commissioner to adjudicate the dispute on remand:
The appeals were filed against the demand of duty on HDPE tapes and penalties imposed on the assessee. The matter was remanded to decide the dispute in light of a judgment of the High Court of Madhya Pradesh. The High Court had classified HDPE tapes under CSH 3920.32, not under CSH 5406.90. However, in the impugned order, the Commissioner adjudicated the issue against the assessee, raising a demand and maintaining the penalties. The first issue raised was regarding the competence of the Commissioner to adjudicate the dispute on remand, originally decided by the Deputy Commissioner.

Eligibility of assessee's products for exemption under Notification No. 221/86-C.E.:
The main issue raised in the appeals was the eligibility of the assessee's products, plastic tapes, for exemption under Notification No. 221/86-C.E. The Tribunal referred to a previous case where it was observed that HDPE strips were eligible for exemption under the notification. Based on this, the Tribunal set aside the demand and penalties. The second issue concerned the eligibility of the assessee's products for the exemption extended to products under the said notification.

Conclusion:
The Tribunal allowed the appeals by remand, setting aside the demand and penalties. It was mentioned that the competent authority, as per the latest Circular, may decide the issue in de novo proceedings, giving the assessee an adequate opportunity to be heard. The appeals were disposed of with this decision pronounced in open court on 13-5-2008.