2013 (6) TMI 484 - AT - Central Excise

SSI Exemption - manufacturing of printed/branded goods having the name of other brand owner - PP caps - Held that - After examining the products and going through the notification, we find that the goods manufactured by the appellants are covered under Notification No. 47/2008 and the appellants are entitled for exemption under Notification No. 8/2003-C.E., dated 1-3-2003. - Decided in favor of assessee.

Summary

Issues:
Appeal against duty demand and penalty under Central Excise Act.

Analysis:
The appellants appealed against the duty demand under Section 11A of the Central Excise Act and the penalty imposed under Section 11AC of the same Act. The case revolved around the denial of SSI exemption to the appellants, who are manufacturers of PP caps printing their customers' names on the caps. The impugned demands were confirmed after issuing a show-cause notice. The appellants argued that they are covered by Notification No. 47/2008-C.E., dated 1-9-2008, which exempts their products from duty levy. The department contended that the appellants were manufacturing printed/branded goods with other brand owners' names, thus not eligible for the exemption.

The Tribunal, after hearing both sides, decided to dispose of the appeal without the requirement of pre-deposit. Upon examining the products and relevant notifications, the Tribunal found that the goods manufactured by the appellants fell under the purview of Notification No. 47/2008 and were entitled to exemption under Notification No. 8/2003-C.E., dated 1-3-2003. Consequently, the impugned order demanding duty and imposing penalties was set aside, and the appeal was allowed with any consequential relief deemed necessary. The decision favored the appellants, granting them relief from the duty demand and penalty imposed by the department under the Central Excise Act.

This judgment highlights the importance of correctly interpreting relevant notifications and exemptions under the Central Excise Act in determining the applicability of duty demands and penalties. It underscores the significance of thorough examination of facts and products in dispute to ensure proper application of the law and rightful entitlement to exemptions provided under specific notifications. The Tribunal's decision showcases the adherence to legal provisions and precedents in delivering a just resolution to the appeal filed by the appellants.