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2018 (4) TMI 103 - AT - Central ExciseBenefit of N/N. 123/81-CE dated 02.06.81 - Held that - there is no dispute that H.S.D. Oil was brought for manufactur in 100% EOU and therefore, the appellants during the period of dispute were eligible for availment of benefit under N/N. 123/81-CE dated 02.06, 1981 - appeal allowed - decided in favor of appellant.
Issues:
Interpretation of Notification No. 123/81-CE regarding eligibility of 100% EOU unit to procure excisable goods without payment of Central Excise duty. Analysis: The appeal was directed against an order-in-appeal passed by the Commissioner of Customs, Central Excise & Service Tax (Appeals), Lucknow. The case involved a 100% EOU unit engaged in the manufacturing of Cotton Yarn, which availed the facility under Notification No. 123/81-CE for H.S.D. Oil procurement. The revenue contended that H.S.D. Oil did not qualify as a raw material for cotton yarn production as it was used for electricity generation. Multiple show cause notices were issued for recovery of Central Excise duty. The Original authority, citing a CBEC clarification and a Tribunal decision, ruled in favor of the appellant. However, the Commissioner (Appeals) modified the order, disallowing the benefit of the notification before a specific date. The appellant challenged this decision before the Tribunal. During the hearing, the appellant's counsel argued that the Tribunal's decision in a similar case had attained finality, making the impugned Order-in-Appeal unsustainable. The revenue's representative supported the Order-in-Appeal. Upon review, the Tribunal noted that the H.S.D. Oil was indeed brought for manufacturing in the 100% EOU, making the appellants eligible for the Notification No. 123/81-CE benefits. Consequently, the Tribunal set aside the Order-in-Appeal and reinstated the Order-in-Original dated 11.05.2011. In conclusion, the Tribunal allowed the appeal filed by the appellant, granting them entitlement to consequential relief as per the law. The decision was made based on the interpretation of the Notification and the specific circumstances of the case, ensuring the eligibility of the 100% EOU unit for the benefit under the said Notification.
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