2011 (5) TMI 555 - AT - Central Excise

Remand order - whether split room air-conditioners installed in the Managing Director s room and in the training hall within the bonded premises of the assessees are eligible to benefit of exemption under Notification No. 1/95-CE dated 4.1.1995 - Held that - The remand is on the basis of the decision of ABN Granites Ltd. Vs. Commissioner of Customs, Cochin ABN Granites Ltd. Vs. Commissioner of Customs, Cochin 2001 -TMI - 50614 - CEGAT, SOUTH ZONAL BENCH, BANGALORE in which it has been held that in the case of EOU any dispute can be adjudicated only after reference to the Development Commissioner - Decided against the Revenue.

Summary

Issues:
Appeal against order remanding eligibility of air-conditioners for exemption under Notification No. 1/95-CE dated 4.1.1995 within bonded premises.

Analysis:
The appeal was filed by the Revenue challenging the order of the Commissioner (Appeals) which remanded the issue of whether split room air-conditioners installed in specific areas within the assessees' bonded premises were eligible for exemption under Notification No. 1/95-CE dated 4.1.1995. The crux of the matter was whether these air-conditioners could benefit from the exemption provided they were used in connection with the manufacture and packing of articles. The lower authority was directed to obtain necessary permission from the Development Commissioner and make a decision in accordance with the law. This remand was based on a previous Tribunal decision in ABN Granites Ltd. Vs. Commissioner of Customs, Cochin - 2001 (133) ELT 481, which established that in the case of an Export Oriented Unit (EOU), any dispute must be resolved after reference to the Development Commissioner.

The Tribunal, comprising Hon'ble Ms. Jyoti Balasundaram, Vice President, and Hon'ble Dr. Chittaranjan Satapathy, Technical Member, after hearing both sides, found no justification to interfere with the order of remand issued by the lower appellate authority. Since no decision on the merits had been made by the lower authority, the Tribunal upheld the impugned order and dismissed the appeal filed by the Revenue. Additionally, the cross-objection filed was deemed as mere comments on or replies to the Revenue's appeal and was disposed of accordingly.

In conclusion, the Tribunal's decision maintained the order of remand issued by the Commissioner (Appeals) regarding the eligibility of air-conditioners for exemption under the specified notification within the bonded premises of the assessees. The case underscores the importance of adherence to legal procedures and the necessity of obtaining appropriate permissions in cases involving disputes related to exemptions for specific goods within designated premises.