2017 (11) TMI 1266 - AT - Central Excise

SSI Exemption - Ramming Mass Normal - excisability - Held that - Ramming Mass Normal is not useable as such for lining the furnace and hence, cannot be defined as Refractory materials - the Original Authority concluded that these products are not to be considered for calculating SSI exemption and only Ramming Mass Premix is dutiable as a excisable product under Heading 38160000. Ramming Mass Normal and Nali Top would remain in the same heading CETH 2506 . As such, these are not manufactured goods and do not fall under the excisable category. Appeal dismissed - decided against Revenue.

Summary

Issues:
Appeal against order of Commissioner of Central Excise, Raipur regarding excisable products classification and SSI exemption eligibility.

Analysis:
The appeal by Revenue challenged the order of the Original Authority dropping proceedings against the respondent for manufacturing and clearing excisable products without registration or payment of central excise duty. The Revenue contended that the turnover value for SSI exemption was incorrectly computed as the product "Ramming Mass Normal" was not considered. The Original Authority examined the classification of the goods in detail, noting the process of manufacturing "Ramming Mass Normal" and other related products. It was established that "Ramming Mass Normal" and "Nali Top" should be classified under Heading 2506, attracting a nil rate of duty. The Original Authority held that these products were not eligible for SSI exemption, and only "Ramming Mass Premix" was dutiable under Heading 38160000. The Revenue argued that the turnover should include "Ramming Mass Normal," but the Original Authority's decision was upheld as the products were not considered manufactured goods falling under the excisable category.

The Tribunal found no merit in the Revenue's appeal, as the Original Authority's findings on excisability and the manufacturing process were not contested by the Revenue. The Tribunal agreed with the classification of "Ramming Mass Normal" and "Nali Top" under Heading 2506, leading to the dismissal of the Revenue's appeal and disposal of the cross objection filed by the respondent. The decision was pronounced in 2017 by the Tribunal.