2011 (1) TMI 119 - AT - Central Excise

Boilers cleared in CDK/SKD condition - Exemption is required to be allowed for such boilers - The circular clearly allows exemption to boilers cleared in CKD and SKD conditions subject to evidence being produced that the goods cleared form part of the complete device and that the said goods are also designed for converting agricultural and municipal waste for producing energy though conventional fuel can be used - Thus appeal is allowed by way of remand

Summary

Issues: Classification and levy of duty of excise on boilers cleared in CKD/SKD condition.

In this judgment by the Appellate Tribunal CESTAT, CHENNAI, the issue revolved around the classification and levy of duty of excise on boilers cleared in CKD/SKD condition. The appellant's counsel argued that the impugned goods should be assessed as boilers in accordance with Board's Order No. 4/92 dated 19.5.92 issued under Section 37B of the Central Excise Act, 1944, which allows exemption for such boilers. It was noted that the adjudicating Commissioner had not considered the application of the cited order. The Tribunal found that the appellant's case fell under the purview of the Board's Order No. 4/92 dated 19.5.92, which exempts boilers cleared in CKD and SKD conditions subject to specific evidence requirements. As a result, the impugned order was set aside, and the matter was remanded to the adjudicating authority for fresh consideration in light of the cited circular. The appellants were directed to be given a second chance to produce the necessary evidence as per the circular, ensuring they receive a fair hearing in the process. Ultimately, the appeal was allowed by way of remand, emphasizing the importance of following the circular's guidelines in assessing the classification and levy of duty on boilers cleared in CKD/SKD condition.