2016 (6) TMI 1016 - AT - Central Excise

Claim of exemption - manufacturer of industrial valves - conventional energy device or non-conventional energy device - Notification No.6/2002-CE dt. 1.3.2002 - Held that - The grant of fiscal benefit being allowed to non-conventional energy device/system specified in List No.9 appended to the notification does not bring the appellant to the ambit of the notification to claim exemption. Appellant s submission would have been considered had the appellant primarily manufactured non-conventional energy device/systems so as to attract Item No.16 of List 9. That being not shown there shall be no grant of relief under the notification following Hon ble Supreme Court s decision in CC (Imports), Mumbai Vs Tullow India Operations Ltd. - 2005 (10) TMI 502 - SUPREME COURT OF INDIA - Demand confirmed - Decided against the assessee.

Summary

Issues:
- Claim of duty exemption under Notification No.6/2002-CE for industrial valves as non-conventional energy device.
- Interpretation of Sl.No.237 of the Table in the exemption notification.
- Applicability of the exemption to the appellant's products.
- Consideration of appellant's manufacturing activities in relation to non-conventional energy devices.
- Grant of fiscal benefit to non-conventional energy devices/systems specified in List No.9.
- Compliance with duty liability and penalty immunity.

The appellant, a manufacturer of industrial valves, claimed duty exemption under Notification No.6/2002-CE, asserting that the valves were non-conventional energy devices. The appellant argued that Item No.16 of List 9 in Sl.No.237 of the Table justified the exemption. However, the Revenue contended that since the appellant was not a manufacturer of non-conventional energy devices, the exemption did not apply. The Tribunal examined the exemption notification and concluded that the appellant, not being a manufacturer of non-conventional energy devices, did not qualify for the exemption under Sl.No.237.

The Tribunal emphasized that the grant of fiscal benefit under List No.9 for non-conventional energy devices/systems did not automatically extend to the appellant's industrial valves. The appellant's claim would have been valid if they primarily manufactured non-conventional energy devices/systems as per Item No.16 of List 9. Citing a Supreme Court decision, the Tribunal dismissed the appeal, stating that without evidence of manufacturing non-conventional energy devices, the appellant could not avail the exemption.

Additionally, the Tribunal noted that duty had been deposited by the appellant, and the Commissioner (Appeals) had granted immunity from penalties. The adjudicating authority was directed to verify the discharge of the entire duty liability and to address any deficiencies according to the law, along with applicable interest. The judgment was dictated and pronounced in open court, maintaining the dismissal of the appeal based on the lack of eligibility for the duty exemption under the specified notification.

This detailed analysis of the judgment covers the issues raised regarding the duty exemption claim, interpretation of the exemption notification, assessment of the appellant's manufacturing activities, and the implications of the grant of fiscal benefit to non-conventional energy devices/systems. The Tribunal's decision, based on legal principles and precedent, provides a comprehensive understanding of the case and its outcome.