2018 (1) TMI 1476 - AT - Central Excise

Levy of Excise duty - intermediate goods - trimmed/untrimmed sheet/circles of brass manufactured by the respondent intended for use in the manufacture of handicrafts or utensils - Held that - We have gone through Notification No. 5/2006 and find that at Sr. No. 41, goods falling under Chapter heading No. 7409 other than Copper attracted Nil rate of duty whereas under Sr. No. 42 trimmed or untrimmed sheets or circles of Copper attract ₹ 3500/- per MT as Central Excise duty - Therefore, we find that insofar as the sheets and circles made of Brass are concerned both the Notification Nos. 5/2006 and 3/2001 are pari materia and, therefore, we do not find any infirmity in the impugned Order-in-Appeal passed by Learned Commissioner (Appeals) - appeal dismissed - decided against Revenue.

Summary

Issues:
Interpretation of Central Excise Duty on trimmed/untrimmed sheets/circles of brass manufactured for handicrafts or utensils under Notification No. 5/2006.

Detailed Analysis:

1. Issue of Central Excise Duty Liability:
The main issue in this case revolved around whether the trimmed/untrimmed sheets/circles of brass manufactured for use in handicrafts or utensils were liable to Central Excise Duty @ ?3500/- per MT under Notification No. 5/2006 or subjected to Nil rate of duty. The Learned Commissioner (Appeals) framed this issue based on the contentions of both the Department and the respondent.

2. Judicial Precedent and Interpretation:
The Tribunal considered the ruling of the Hon'ble Apex Court in the case of CCE, Jaipur v. M/s. Mewar Bartan Nirman Udyog, where it was established that items made from Copper attracted duty @ ?3500/- per MT, while circles made from Brass attracted Nil rate of duty. The Tribunal noted that the Commissioner (Appeals) relied on this ruling and allowed the appeals filed by the respondent based on the interpretation of the relevant notifications.

3. Notification Analysis and Decision:
Upon reviewing Notification No. 5/2006 and the specific entries related to goods falling under Chapter heading No. 7409, the Tribunal found that under Sr. No. 41, goods other than Copper attracted Nil rate of duty, while under Sr. No. 42, trimmed or untrimmed sheets or circles of Copper attracted ?3500/- per MT as Central Excise duty. The Tribunal concluded that in the case of sheets and circles made of Brass, both Notification Nos. 5/2006 and 3/2001 were relevant and parallel. Therefore, the Tribunal upheld the decision of the Commissioner (Appeals) and dismissed the appeal filed by the Revenue, along with disposing of the cross objection.

4. Final Decision:
In the final order, the Tribunal confirmed that the impugned Order-in-Appeal passed by the Commissioner (Appeals) was valid and in accordance with the interpretation of the relevant notifications and judicial precedents. The appeal filed by the Revenue was dismissed, and the cross objection was also disposed of, thereby settling the issue of Central Excise Duty liability on the trimmed/untrimmed sheets/circles of brass manufactured for specific purposes.

This comprehensive analysis of the judgment addresses the interpretation of Central Excise Duty under specific notifications and judicial precedents, providing a detailed insight into the decision-making process of the Tribunal in resolving the issues at hand.