2018 (3) TMI 1277 - AT - Central Excise

Whether untrimmed sheets/circles of Brass manufactured by the respondent were leviable to Central Excise Duty as an intermediate product arising in the course of manufacture of trimmed product and waste and scrap attracting Nil rate of duty being captively consumed or whether the said untrimmed sheets of brass were leviable to Central Excise duty? Held that - It is very clear from the ruling by Hon ble Supreme Court in above said case of CCE, Jaipur vs. M/s Mewar Bartan Nirman Udyog 2008 (9) TMI 33 - SUPREME COURT that all gods falling under Heading No. 7409 made of Brass and intended for use in the manufacture of utensils and handicrafts shall attract Nil rate of duty. Undisputedly untrimmed sheets of brass were being used in the manufacture of utensils and handicrafts and, therefore, they were attracting Nil rate of duty and, therefore, the question of applicability of said N/N. 67/95 did not arise. Appeal dismissed - decided against Revenue.

Summary

Issues involved: Whether untrimmed sheets/circles of Brass manufactured by the respondent were leviable to Central Excise Duty as an intermediate product arising in the course of manufacture of trimmed product and waste and scrap attracting Nil rate of duty being captively consumed.

Analysis:

1. The issue in the present appeal revolved around the classification and duty liability of untrimmed sheets/circles of Brass manufactured by the respondent. The learned Commissioner (Appeals) framed the issue based on whether these untrimmed sheets of Brass should attract Central Excise Duty as an intermediate product or be considered captively consumed waste and scrap with a Nil rate of duty. The impugned Order-in-Appeal cited the Apex Court's ruling in CCE, Jaipur vs. M/s Mewar Bartan Nirman Udyog, which stated that Brass goods intended for utensils and handicrafts attract Nil rate of duty.

2. The Revenue contended that there were two final products resulting from the untrimmed sheets of Brass: trimmed sheets and scrap, with the latter falling under a category attracting Nil rate of duty. The appeal argued that the untrimmed sheets used as inputs for these final products should not benefit from the exemption for captive consumption under Notification No. 67/1995 dated 16.03.1995.

3. Upon hearing the parties and examining the records, the Tribunal referred to the Supreme Court's ruling in CCE, Jaipur vs. M/s Mewar Bartan Nirman Udyog, emphasizing that all Brass goods intended for utensils and handicrafts attract Nil rate of duty. As the untrimmed sheets of Brass were used in the manufacture of such products, they were deemed to attract Nil rate of duty, rendering the question of Notification No. 67/95 inapplicable. Consequently, the Tribunal found no merit in the Revenue's appeal and rejected the same, thereby disposing of the case.

This comprehensive analysis of the judgment highlights the key legal arguments, interpretations, and conclusions reached by the Appellate Tribunal CESTAT, ALLAHABAD in the case concerning the levy of Central Excise Duty on untrimmed sheets/circles of Brass.