2017 (3) TMI 287 - AT - Central Excise

Captive consumption - intermediate producut - Benefit of N/N. 67/95 dated 16.03.1995 - While trimming untrimmed sheets and circles scrap was generated, whether untrimmed circles and sheets of brass were eligible to enjoy benefits of Notification? - Held that - merely because in the process of trimming, certain wastes have arisen, untrimmed sheets captively consumed, the benefit of exemption under N/N. 67/95 cannot be denied. Prima facie, the applicants shall be eligible for the benefit of N/N. 67/95 - appeal dismissed - decided against Revenue.

Summary

Issues Involved:
1. Eligibility of untrimmed brass sheets and circles for exemption under Notification No. 67/95
2. Interpretation of the relationship between brass and copper for excise duty purposes

Analysis:

Issue 1: Eligibility of untrimmed brass sheets and circles for exemption under Notification No. 67/95
The case involved two appeals filed by the Revenue challenging Order-in-Appeal No. 240-241/CE/MRT-II/2009, which demanded Central Excise Duty on untrimmed brass sheets and circles. The respondents were engaged in manufacturing these products, and the Revenue contended that untrimmed circles and sheets were not eligible for the benefits of Notification No. 67/95 dated 16.03.1995. The Original authority had confirmed the demand and imposed penalties. However, the Commissioner (Appeals) set aside the Order-in-Original and allowed the appeals. The Revenue appealed to the Tribunal, arguing that brass and copper are the same goods and should be treated equally for duty purposes.

Issue 2: Interpretation of the relationship between brass and copper for excise duty purposes
The grounds of appeal included the argument that brass, being an alloy of copper, should be treated the same as copper for duty purposes. The Revenue cited a previous case where a strong prima facie case regarding the demand in view of Notification No. 67/95 was affirmed by the High Court. The Tribunal considered the arguments presented by both parties, including references to previous judgments. The Counsel for respondents highlighted a Tribunal order and a High Court ruling supporting the eligibility of untrimmed sheets for exemption under the notification. They also referenced a Supreme Court case distinguishing between brass and copper for duty classification. Ultimately, the Tribunal agreed with the respondents' contentions, dismissing the appeals filed by the Revenue and allowing for any consequential relief as per law.

This judgment clarifies the distinction between brass and copper for excise duty purposes and upholds the eligibility of untrimmed brass sheets and circles for exemption under Notification No. 67/95. The decision was based on a thorough analysis of the arguments presented by both parties and relevant legal precedents, ultimately leading to the dismissal of the Revenue's appeals.