2013 (12) TMI 107 - AT - Central Excise

Entitlement for benefit of Notification No. 4/97 and subsequent Notification No. 5/98 Held that - There is no such condition of producing end use certificates in the notification, which grants concessional rate of duty on the simplicitor ground that such circles are intended for use in the manufacture of utensils and handicrafts - as long as there is an intention to use the sheets and circles in the manufacture of utensils and handicrafts, the benefit of notification is required to be extended, without actually verifying as to whether such sheets/circle stand actually used in the manufacture of utensils/handicrafts. Revenue cannot legislate and introduce a new condition in the notification on its own and call for the end use certificates - the revenue insistence on such production of account of the customers is neither in terms of the notification nor any other condition of the said notification requires them to do so - rejection of certificates produced by the customers on flimsy ground cannot be accepted Decided in favour of Assessee.

Summary

Issues:
1. Interpretation of Notification No. 4/97-CE and subsequent Notification No. 5/98-CE regarding concessional rate of duty for Copper and Copper Alloy Circles/Sheets.
2. Dispute over whether the manufactured circles and sheets were used for the intended purpose of manufacturing handicrafts or utensils.
3. Rejection of end use certificates by lower authorities as evidence of the use of sheets/circles for manufacturing utensils or handicrafts.

Analysis:

Issue 1: Interpretation of Notifications
The judgment addresses the applicability of Notification No. 4/97-CE and subsequent Notification No. 5/98-CE, providing a concessional rate of duty for Copper and Copper Alloy Circles/Sheets intended for use in manufacturing handicrafts or utensils falling under Chapter 74. Condition No. 23 of the notifications must be satisfied for availing the benefit, as confirmed by the appellant during the relevant period.

Issue 2: Dispute on Intended Use
The Revenue initiated investigations questioning whether the circles and sheets manufactured by the appellant were actually used by the consignees for manufacturing utensils or handicrafts. The lower authorities upheld the denial of benefits under the notification due to the inability to verify the end use of the products, despite the appellant's customers providing certificates confirming the use of sheets and circles for manufacturing utensils or handicrafts.

Issue 3: Rejection of End Use Certificates
The original Adjudicating Authority rejected the end use certificates provided by the appellant's customers, citing reasons such as the certificates being undated and lacking support from the customers' accounts. The judgment criticizes this rejection, emphasizing that the notification does not mandate the production of end use certificates. The lower authorities' insistence on such certificates and subsequent denial of benefits based on flimsy grounds is deemed unjustified, as the intention of the authorities to confirm the demand is questioned.

In conclusion, the judgment sets aside the impugned order and allows the appeal in favor of the appellant, highlighting the importance of adhering to the conditions specified in the notifications without imposing additional requirements not explicitly stated.