2011 (9) TMI 349 - AT - Central Excise

Eligibility - SSI exemption - Prima facie it appears that the present respondents are entitled for SSI exemption and directed the lower authority to re-quantify the duty after extending the benefit of SSI exemption notification - The appellate authority has to give a definite finding whether the respondents are entitled for the SSI exemption or not - The appeal cannot be decided on prima facie view - Therefore, set aside the impugned order and remand the case back to the appellate authority for deciding the matter afresh after affording an opportunity of being heard to the respondents - Appeal is disposed of by way of remand.

Summary

Issues:
1. Entitlement to SSI exemption under Central Excise law.

Analysis:
The appeal before the Appellate Tribunal CESTAT, Mumbai involved a dispute regarding the entitlement of the present respondents to the Small Scale Industries (SSI) exemption under Central Excise law. The impugned order by the Commissioner(Appeals) indicated a prima facie view that the respondents might be eligible for the SSI exemption. The Revenue contended that the finding should be definite, necessitating reconsideration of the matter.

Upon hearing both sides, the Tribunal observed that the Commissioner(Appeals) had directed the re-quantification of duty payable by extending the SSI exemption benefit to the respondents based on a prima facie view. However, the Tribunal emphasized that the appellate authority must provide a clear and definite finding on the entitlement to SSI exemption rather than relying solely on a prima facie view. Consequently, the Tribunal set aside the impugned order and remanded the case back to the appellate authority for a fresh decision after granting an opportunity of being heard to the respondents.

In conclusion, the appeal was disposed of by way of remand, highlighting the importance of a definitive determination on the entitlement to SSI exemption under Central Excise law.