2006 (12) TMI 59 - AT - Central Excise

SSI Exemption Revenue contended that appellants liable to pay excise duty on the re-imported good cleared in the domestic market Held that appellant eligible for SSI exemption, so there is no question of duty payment

Summary

Issues:
1. Eligibility of SSI exemption for re-imported goods.
2. Interpretation of statutory exemptions under Notification No. 8/2003-C.E.
3. Consideration of relevant case laws in determining excise duty liability.

Analysis:
1. The appellant exported goods to Australia, which were later returned, leading to a demand for excise duty on re-import. The appellant claimed exemption under SSI Notification No. 8/2003-C.E., supported by a certification from the Superintendent of Central Excise. The issue revolved around the eligibility of SSI exemption for the re-imported goods.

2. The appellant argued that statutory exemptions, once granted, must be upheld. The Tribunal considered the certification provided by the Superintendent, confirming the appellant's eligibility for exemption due to their total clearances being below Rs. one crore in the financial year 2003-04. Relying on case laws such as Orient Weaving Mills (P) Ltd. v. 1.101 - 1978 (2) E.L.T. (J 311) and CCE v. Parle Exports (P) Ltd. - 1988 (38) E.L.T. 741, the Tribunal emphasized the importance of honoring statutory exemptions.

3. The JCDR suggested a re-examination of the SSI exemption eligibility issue by the Original Authority. However, the Tribunal noted that the Superintendent's certification was undisputed and clearly established the appellant's entitlement to the exemption. By aligning with the judgments of the Apex Court and the Tribunal, the Tribunal set aside the impugned order and allowed the appeal, ruling in favor of the appellant regarding the excise duty liability on the re-imported goods cleared in the domestic market.