2008 (12) TMI 466 - AT - Central Excise

Summary

Issues:
- Interpretation of Notification No. 1/93 for SSI exemption
- Inclusion of value of goods cleared by job worker in appellant's turnover
- Availing benefit of Notification Nos. 83/94 and 84/94
- Jurisdiction of Commissioner (Appeals) to include value of unlined textile hose pipes in appellant's clearances

Analysis:
1. Interpretation of Notification No. 1/93 for SSI exemption:
The case involved the appellant, a manufacturer of unlined textile hose pipes, availing SSI exemption under Notification No. 1/93. The issue arose when goods were sent to a job worker for lining, and the value of these goods cleared by the job worker was questioned for inclusion in the appellant's turnover. The Commissioner (Appeals) held that the value of goods cleared by the job worker could be added to the appellant's total clearances if the goods were considered excisable. The matter was remanded to determine the excisability of the goods.

2. Inclusion of value of goods cleared by job worker:
The appellant contested that they were not availing the benefit of Notification Nos. 83/94 and 84/94 during the period in question. They argued that the value of unlined hose pipes cleared during that time should not be added to their clearances. The Tribunal found that the Commissioner (Appeals) had exceeded the scope of the issue by including the value of goods cleared by the job worker in the appellant's turnover without clear reasoning. The case was remanded for a clear determination on whether the job worker's clearances should be included in the appellant's turnover.

3. Availing benefit of Notification Nos. 83/94 and 84/94:
The Tribunal noted the appellant's contention that they started availing the benefits of these notifications only from a later date. The issue of whether partial availing of these notifications was possible during the relevant period needed clarification. The Tribunal directed a reexamination of the facts to determine if the job worker's clearances should be part of the appellant's turnover.

4. Jurisdiction of Commissioner (Appeals) to include value of unlined textile hose pipes:
The Tribunal set aside the Commissioner (Appeals) order that included the value of unlined textile hose pipes in the appellant's clearances as it was not part of the original issue raised in the show cause notice or order-in-original. The Tribunal allowed the appeal by remanding the case for a clear determination on the inclusion of job worker's clearances in the appellant's turnover.

5. Second Appeal E/3701/03:
The second appeal was based on the remand order given by the Commissioner (Appeals), which was set aside by the Tribunal. Consequently, the order-in-original and order-in-appeal were also set aside as they were based on the remand order. The appeal was allowed, and the orders were deemed not to survive due to the remand order being overturned.

This detailed analysis highlights the key issues of interpretation of notifications, inclusion of job worker's clearances, availing of benefits under specific notifications, and the jurisdiction of the Commissioner (Appeals) in making determinations beyond the scope of the original issue.