2008 (5) TMI 548 - AT - Central Excise

Summary

Issues:
1. Waiver of pre-deposit of duty and penalties based on small scale exemption notification.
2. Interpretation of Notification No. 8/2003 regarding credit in respect of branded goods.

Analysis:
1. The applicant sought waiver of pre-deposit of duty and penalties amounting to Rs. 15,77,741/-, contending that denial of small scale exemption notification benefit was incorrect. The Tribunal referred to the decision in CCE v. Ramesh Food Products, where it was held that credit for duty paid on branded goods cannot be availed if benefiting from the small scale exemption notification. However, the applicant relied on the Nebulae Health Care Ltd. case, where it was established that full exemption under the notification is applicable to goods manufactured in their own brand name, allowing credit for duty paid on inputs for branded goods cleared on payment of duty.

2. The Revenue argued that the Supreme Court's decision in Ramesh Food Products case overruled the Tribunal's view in Nebulae Health Care Ltd. case. However, the Tribunal analyzed Notification No. 8/2003-C.E., which states that goods bearing another person's Brand Name should not be considered in calculating the aggregate value of clearances. Based on this provision, the Tribunal found merit in the applicant's case, leading to the waiver of pre-deposit of duty and penalties. Consequently, the stay petitions were allowed.

In conclusion, the Tribunal granted the applicant's request for waiver of pre-deposit of duty and penalties by considering the provisions of Notification No. 8/2003-C.E. and the interpretation of credit availability for branded goods under the small scale exemption notification. The decision highlighted the importance of analyzing specific notification provisions in determining the applicability of exemptions and credits in such cases, ultimately favoring the applicant's position in this matter.