2008 (10) TMI 400 - AT - Central Excise

Summary

Issues:
Exemption claim under Notification No. 6/2002 for weighing machines and conveyors.

Analysis:
The appellant manufactured weighing machines and conveyors for a Bio Gas Combustion Co-generation Power Project and claimed exemption under Notification No. 6/2002. The original authority disallowed the exemption, resulting in a demand of duty of Rs. 2,72,544. The Commissioner (Appeals) upheld the demand but set aside the penalty imposed by the original authority.

The appellant argued that the weighing machines and conveyors qualified for the concession as an "energy device" under the notification. They relied on a Tribunal decision in a similar case involving batteries, emphasizing that serial numbers 16 and 21 of the list should be considered together. The appellant did not claim financial hardship.

The Jt. CDR for the Revenue contended that the current case differed from the precedent cited by the appellant, as that case involved captive consumption of batteries, unlike the situation with weighing machines and conveyors. It was argued that these machines cannot be classified as energy devices.

The Tribunal analyzed the submissions and opined that weighing machines and conveyors did not fall under serial no. 16 of list no. 9 of the notification. The Tribunal found the precedent cited by the appellant inapplicable to the present case. Consequently, the Tribunal directed the appellant to deposit Rs. 1,50,000 within eight weeks and report compliance by a specified date. Pending the deposit, the Tribunal waived the pre-deposit of the remaining duty amount and stayed the recovery until the appeal's disposal. The judgment was pronounced on 7-10-2008.