2007 (8) TMI 233 - AT - Central Excise

A Trade Notice cannot prevail over the notification issued by CBEC & assessee cannot be debarred when notification grants appropriate relief Notification 184/06 and Trade Notice 52/92.

Summary

Issues:

1. Interpretation of Circular No. 63/95 dated 16-3-1995 and Notification No. 184/86 dated 1-3-1986.
2. Validity of benefit granted to the Respondent based on Notification No. 184/86.
3. Consideration of Trade Notice No. 52/92 dated 8-7-1992 in granting relief.

Analysis:

1. The judgment deals with the interpretation of Circular No. 63/95 dated 16-3-1995 and Notification No. 184/86 dated 1-3-1986. The appellant was not entitled to the benefit under Circular No. 63/95, but the ld. Commissioner (Appeal) granted benefit to the Respondent based on Notification No. 184/86. The original and appellate authorities considered the facts in light of Notification No. 184/86. The Revenue argued that Trade Notice No. 52/92 clarifying Notification No. 184/86 does not entitle the Respondent to relief. However, the Tribunal held that a trade notice cannot override a CBEC notification, and as long as the notification relied upon by the authorities grants relief, the Respondent cannot be denied.

2. The validity of the benefit granted to the Respondent under Notification No. 184/86 was questioned by the Revenue. The Tribunal found no legal infirmity in the order of the ld. Appellate Authority. The Revenue failed to demonstrate any error of law in relying on Notification No. 184/86. It was not shown whether the notification had been rescinded or was no longer in force. As no legal flaw was highlighted, the Tribunal concluded that the Revenue's appeal lacked merit and did not warrant intervention.

3. The consideration of Trade Notice No. 52/92 dated 8-7-1992 was crucial in determining the relief granted to the Respondent. The Revenue contended that this trade notice should impact the benefit provided under Notification No. 184/86. However, the Tribunal emphasized that the authority's reliance on the notification for granting relief was valid. The Tribunal found no justification to overturn the decision based on the Trade Notice, reiterating that a trade notice does not supersede a valid notification issued by the CBEC.

This judgment underscores the importance of correctly interpreting relevant notifications and circulars in granting benefits and highlights the principle that a trade notice cannot override a notification issued by the CBEC. The Tribunal's decision rested on the legal validity of the notifications relied upon by the authorities and the absence of any demonstrated legal flaw in granting relief to the Respondent.