2016 (8) TMI 283 - AT - Central Excise

Applicability of trade notice dated 24.02.2014. - Requirement of physical control on the unit by jurisdictional officers on cigarette manufacturing unit Held that - the trade notice is applicable to the unit which are working less than 50% of their capacity. Appellant is working more than 50% capacity in manufacture of cigarettes. Trade notice not applicable. No requirement of physical control by jurisdictional officers on unit of appellant Decided in favor of appellant.

Summary

Issues:
1. Application for early hearing of appeal
2. Interpretation of trade notice regarding physical control of cigarette manufacturing units
3. Applicability of trade notice to the appellant
4. Challenge to the impugned order based on the trade notice
5. Comparison with a previous case regarding trade notice challenge
6. Lack of statutory provision for physical control of cigarette manufacturing units

Analysis:

1. The appellant requested early hearing of the appeal due to the recurring nature of the issue, which was granted, and the matter was disposed of on the same day with the consent of both parties.

2. The case involved the interpretation of a trade notice issued regarding the procedure for partial or non-working of machines in cigarette manufacturing units, which required sealing and de-sealing by authorized officers based on the unit's operating capacity.

3. The appellant argued that the trade notice did not apply to them as they were operating above 50% of their manufacturing capacity, and there was no statutory provision for physical control of cigarette manufacturers under Central Excise Law.

4. The respondent supported the impugned order but acknowledged the absence of statutory provisions for physical control, stating that the trade notice imposed restrictions only under specific conditions, which did not apply to the appellant.

5. The judge noted that the appellant challenged the order, not the trade notice itself, distinguishing it from a previous case where the challenge was against the trade notice directly, making the decision in the previous case irrelevant to the current situation.

6. After detailed consideration, the judge concluded that the trade notice was not applicable to the appellant as they were operating above the specified capacity, leading to the setting aside of the impugned order and granting relief to the appellant. It was emphasized that there was no need for physical control by jurisdictional officers over the appellant's manufacturing unit due to the lack of statutory provision.

In summary, the judgment resolved the issues related to the interpretation and applicability of the trade notice concerning physical control of cigarette manufacturing units, highlighting the absence of statutory provisions for such control and the specific conditions under which the trade notice applied.