2018 (8) TMI 1441 - AT - Central Excise

SSI Exemption - N/N. 08/2003-CE dated 01.03.2003 - exclusion of value of exemption goods cleared under N/N. 05/2006-CE - Held that - This Bench in appellant own case has rejected the contentions of appellant that for calculating the aggregate value of clearances under Notification No. 08/2003, the value of exempted goods under Notification 05/2006 should not be included - decided against appellant. Demand of duty on the waste and scrap - Held that - The First Appellate Authority has not remanded the matter for coming to a conclusion considering various submissions of the assessee - In our considered view, in the facts and circumstances of this case, it is a correct conclusion reached by the First Appellate Authority. Appeal disposed off.

Summary

Issues: Eligibility for SSI exemption under Notification No. 08/2003-CE and duty on waste and scrape generated during manufacturing of footwears.

In the judgment by the Appellate Tribunal CESTAT HYDERABAD, the issue primarily revolved around the eligibility of the appellant to avail SSI exemption under Notification No. 08/2003-CE while excluding the value of exemption goods cleared under Notification No. 05/2006-CE, and the duty on waste and scrap generated during the manufacturing process of footwears. The Tribunal noted that in the appellant's own case, the Bench had previously rejected the appellant's contention that the value of exempted goods under Notification 05/2006 should not be included in calculating the aggregate value of clearances under Notification No. 08/2003. This decision had been upheld by higher judicial forums, leading to the issue being decided against the appellant on merits.

Regarding penalties imposed by lower authorities, the Tribunal acknowledged the appellant's claim that in earlier cases, penalties had been set aside by the Tribunal. The appellant requested a similar outcome in this case, particularly concerning the demand related to waste and scrap, which the First Appellate Authority had remanded back for further consideration. The Tribunal decided in favor of the Revenue on the merits, upholding the demand for duty and interest from the appellant. However, in line with previous decisions in the appellant's cases, the Tribunal set aside the penalty imposed by the Lower Authorities. The Tribunal concurred with the First Appellate Authority's decision to remand the matter concerning duty on waste and scrap, ultimately upholding the impugned order while overturning the portion confirming the penalty imposed by the Adjudicating Authority.

In conclusion, the appeal was disposed of with the Tribunal pronouncing the operative portion of the order in open court at the conclusion of the hearing.