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2013 (5) TMI 163 - AT - Central ExciseDutiability of the blank CD created during the process of replication of Audio/Video CDs and CD Rom Software - Held that - Following the case of M/s.Pearl Engineering Co. relying on Siddharth Opticals Disc Pvt. Ltd. Vs. Union of India 2013 (1) TMI 331 - DELHI HIGH COURT no duty is chargeable on the blank CDs created during the course of manufacture of Audio CDs, Video CDs and CD Rom Software. In favour of assessee.
Issues: Dutiability of blank CDs created during the replication process of Audio CDs, Video CDs, and CD Rom Software under Central Excise duty exemption notification.
Analysis: The appeal in question was filed by M/s. Bhola Plastic Industries Pvt. Ltd. against an Order-in-Appeal, where they were engaged in manufacturing Audio CDs, Video CDs, and CD Rom Software falling under chapter 85 of the Central Excise Tariff Act. The appellant claimed exemption from Central Excise duty under Notification No. 06/2006. The Department raised concerns during the investigation regarding the dutiability of the blank CDs created during the replication process of these products. Show Cause Notices were issued to the appellants, which were adjudicated by the Additional Commissioner, confirming duty, interest, and penalties. The appellants then appealed to the Commissioner of Central Excise (Appeals), who rejected their appeals. The main issue in this appeal revolved around the dutiability of the blank CDs created during the replication process of Audio CDs, Video CDs, and CD Rom Software. The Tribunal referred to a previous order in the case of M/s. Pearl Engineering Co. and relied on decisions of the Hon'ble High Court of Delhi in the case of Siddharth Opticals Disc Pvt. Ltd. vs. Union of India. Following these precedents, the Tribunal held that no duty is chargeable on the blank CDs created during the manufacturing process of the mentioned products. Consequently, the Tribunal waived the pre-deposit, set aside the impugned order, and allowed the appeal filed by the appellants.
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