2015 (12) TMI 1161 - SC - Central Excise

Duty demand - whether the chemical processing of Platinum, Palladium, Rhodium, Gold and Silver is intermediary product which is exigible to excise duty - Held that - final goods which fall under Chapter 71, no CENVAT/MODVAT credit is taken on the aforesaid products which are treated as intermediary products. On the other hand, the goods manufactured falling under Chapter 71, in respect whereof the dispute is raised by the Revenue, the goods are cleared at nil rate of duty. We, thus, do not see any reason to interfere with the orders of the Tribunal which are deciding the issue correctly on the facts of these cases. - Decided against Revenue.

Summary

Issues involved:
Whether chemical processing of Platinum, Palladium, Rhodium, Gold, and Silver is an intermediary product subject to excise duty.

Analysis:
The primary issue in the appeals before the Supreme Court was whether the chemical processing of certain metals like Platinum, Palladium, Rhodium, Gold, and Silver constituted intermediary products liable for excise duty. The Tribunal had previously ruled that the Revenue failed to provide substantial evidence regarding the marketability of these intermediate products used by the assessees in their manufacturing processes. The Department's argument, represented by Mr. K. Radhakrishnan, attempted to rely on alleged admissions in the statements of the assessees' officers, but the Court found no such admissions supporting this claim.

Furthermore, it was highlighted that the assessees did not claim CENVAT/MODVAT credit on the products treated as intermediary goods, falling under Chapter 71, which were subsequently used in the manufacturing of final goods. Additionally, the goods in question, falling under Chapter 71, were cleared at a nil rate of duty. This information led the Court to conclude that the Tribunal's decisions were appropriate based on the facts of the cases, and there was no justification for intervention.

In conclusion, the Supreme Court dismissed the appeals, affirming the Tribunal's rulings on the matter. The judgment emphasized the lack of concrete evidence presented by the Revenue regarding the marketability of the intermediary products and the specific treatment of these products in the manufacturing process, ultimately determining that excise duty was not applicable in these circumstances.