2008 (9) TMI 352 - AT - Central Excise

Intermediate Goods Dutiability - Show Cause Notices were issued for the period from January, 1996 to November, 1997 for demand of Additional Excise Duty on Dipped Nylon Tyre Cord Fabric . The Adjudicating Authority, vide his Order-in-Original No.75/1998 dated 13-5-1998 has confirmed the demands made in the Show Cause Notices. - appellant stated that they had paid the demand under the notices and for the present, they are not disputing the payment of duty without prejudice to their contentions regarding the non-manufacture and non-marketability of the subject goods - the appellants had paid the amounts demanded vide Debit Entries No. 1172/10080, 81, 82, 83, 84 and 85 all dated 19-3-2008 in RG 23A Part-II.- held that since duty has been paid and accepted the remand of matter is not warranted

Summary

Issues:
1. Expunction of remarks made by the Bench in a previous order.
2. Classification and duty liability on Dipped Nylon Tyre Cord Fabric.
3. Re-computation of duty and consideration of CENVAT credit.
4. Demand of Additional Excise Duty for a specific period.

Expunction of Remarks:
The Special Counsel for Revenue filed a miscellaneous application seeking expunction of remarks made by the Bench in a previous order. The Bench clarified that the remarks were general in nature and not directed against the Special Counsels appearing before them. The Bench rejected the Miscellaneous Application after careful consideration.

Classification and Duty Liability on Dipped Nylon Tyre Cord Fabric:
The appeal was filed against the Order-in-Appeal passed by the Commissioner regarding the demand of Basic Excise Duty and Additional Excise Duty on Dipped Nylon Tyre Cord Fabric (NTCF) used in manufacturing tyres for Animal Drawn Vehicles. The Bench noted that similar issues were addressed in a case before the Mumbai Bench. The appellants agreed to discharge duty liability under the relevant classification. The Bench held that the impugned product was classifiable under CH 59.02 and liable to Basic Excise Duty and Additional Excise Duty. The matter was remanded to the Original Authority for re-computation of duty considering the benefit of CENVAT Credit.

Re-computation of Duty and Consideration of CENVAT Credit:
The Bench emphasized the need to re-compute duty liability, considering the duty already paid by the appellants and the benefit of CENVAT Credit. The appeal was remanded to the Original Authority for re-computation of duty to avoid double taxation for the same period. The Bench also addressed the issue of marketability of the impugned product for future cases.

Demand of Additional Excise Duty for a Specific Period:
Another appeal was filed against the Order-in-Appeal regarding the demand of Additional Excise Duty on Dipped Nylon Tyre Cord Fabric for a specific period. The Adjudicating Authority confirmed the demands, which were upheld by the Commissioner (Appeals). The appellants agreed to pay the demand without disputing it, and the Bench classified the product under CH 59.02, confirming the duty already paid. No penalties were imposed, and the appeal was disposed of accordingly.

This detailed analysis of the judgment covers the issues of expunction of remarks, classification and duty liability on Dipped Nylon Tyre Cord Fabric, re-computation of duty with CENVAT credit consideration, and the demand of Additional Excise Duty for a specific period.