2008 (7) TMI 783 - AT - Central Excise

Summary

Issues:
Interpretation of Notification No. 8/2003 for exemption on unbranded goods, applicability of previous judgments on similar notifications, eligibility for Cenvat credit, waiver of pre-deposit pending appeal.

Analysis:
The case involved a dispute regarding the eligibility of an applicant for exemption under Notification No. 8/2003 for clearing unbranded goods while also manufacturing and clearing specified goods with a brand name, for which they paid duty and availed Cenvat credit. The Department contended that since the applicant availed Cenvat credit for branded goods, the exemption for unbranded goods was not applicable, leading to a demand of Rs. 5,54,051/- and imposition of penalty.

The learned Advocate argued that a previous decision in the case of CCE, Ahmedabad v. Ramesh Food Products was not directly applicable as it related to a different notification (175/86-C.E.) with different wording compared to Notification No. 8/2003. On the other hand, the learned DR relied on another decision in the case of Saurashtra Exports v. CCE, Rajkot, suggesting that the notifications in question were substantially similar.

After considering the submissions, the Tribunal opined that the change in wording in Notification No. 8/2003 distinguished it from the previous cases cited. The Tribunal noted that the decision in Ramesh Foods Products was rendered in a different context and that the case of Saurashtra Exports pertained to the denial of Cenvat credit, not the exemption under Notification No. 8/2003. Consequently, the Tribunal decided to waive the pre-deposit of dues as per the impugned order and stayed the recovery pending the disposal of the appeal.