2007 (10) TMI 64 - AT - Central Excise

Demand raised as procedure in terms of Not. 43/01 not followed by assessee- In case of export no duty is attracted so demand cannot be raised on such grounds Revenue s appeal dismissed

Summary

Issues:
1. Clearance of S.S. Flats without payment of duty for conversion into S.S. Cold Rolled Pattas on job work basis.
2. Clearance of S.S. Cold Rolled Pattas without duty payment for further manufacture of S.S. Utensils on job work basis for export.
3. Alleged non-compliance with Notification No. 43/2001-C.E. (N.T.) dated 26-6-2001.
4. Dispute over the procedure followed in the clearance process.
5. Appeal against the Commissioner (Appeals) decision allowing the appeal.

Analysis:
1. The appellant cleared S.S. Flats without duty payment to M/s. Rama Sheets Pvt. Ltd. for conversion into S.S. Cold Rolled Pattas on job work basis. These Pattas were further cleared without duty payment for manufacturing S.S. Utensils on job work basis for export. The appellant obtained necessary permission from the Deputy Commissioner as per Notification No. 43/2001-C.E. (N.T.) dated 26-6-2001 and Board's Circular No. 106/17/95/CEX dated 2-3-95.

2. The original adjudicating authority confirmed demand against the appellant for alleged non-compliance with the said Notification. However, the Commissioner (Appeals) overturned this decision, noting that the goods were removed under Bond with department permission and subsequently exported, citing relevant circulars and case laws supporting duty exemption for exported goods.

3. The Commissioner (Appeals) highlighted that the goods were exported, and the Revenue did not dispute this fact. Referring to the precedent set by the Tribunal in the case of Alpha Garments [1996 (86) E.L.T. 600], the Commissioner affirmed the duty exemption for exported goods. Consequently, the Commissioner's decision to allow the appeal was upheld, rejecting the Revenue's appeal.

In conclusion, the judgment upheld the duty exemption for goods exported after job work processing, as supported by relevant circulars and legal precedents. The dispute over the procedure followed in the clearance process was resolved in favor of the appellant, emphasizing compliance with the applicable notifications and regulations.