2019 (11) TMI 1053 - AT - Central Excise

Captive consumption/intermediate products - manufacture of plastic sacks / fabrics (finished goods) cleared without payment of duty - whether duty payable on PP bags / strips captively consumed in the manufacture of plastic sacks / fabrics cleared without payment of duty? - HELD THAT - The issue is decided in the case of SOUTHERN BAGS AND CHEMICALS PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, TIRUNELVELI 2017 (12) TMI 6 - CESTAT CHENNAI where it was held that the input was thereby an intermediate manufactured in the factory of the appellant and was not at all covered by the barring clauses contained in (i), (ii) and (iii) and (iv) of Col.2 of the Table appended to the N/N. 67/95-CE dated 16.03.1995 - demand do not sustain - appeal allowed - decided in favor of appellant.

Summary

Issues:
Whether duty payable on PP bags/strips captively consumed in the manufacture of plastic sacks/fabrics cleared without payment of duty.

Analysis:
The Appellate Tribunal CESTAT Chennai, comprising Hon’ble Ms. Sulekha Beevi C.S., Member (Judicial), and Hon’ble Shri P. Anjani Kumar, Member (Technical), addressed the issue of duty payable on PP bags/strips captively consumed in the manufacture of plastic sacks/fabrics cleared without payment of duty. The Tribunal noted that the said issue had already been settled in the case of Southern Bags and Chemicals Pvt. Ltd. Vs CCE Tirunelveli – 2017 (12) TMI 6 – CESTAT Chennai. The appellant was represented by Ld. Counsel Mr. V. Ravindran, while Ld. A.R Ms. K. Komathi appeared for the department.

The Tribunal, after considering the precedent set in the case referred to, concluded that the demand for duty cannot be sustained in the present case. Therefore, the impugned orders were set aside, and the appeals were allowed with consequential reliefs, if any, as per law. The decision was dictated and pronounced in open court by the Tribunal.

In summary, the judgment by the Appellate Tribunal CESTAT Chennai revolved around the issue of duty payable on PP bags/strips used in the manufacture of plastic sacks/fabrics without payment of duty. The Tribunal relied on a previous decision to rule in favor of the appellant, setting aside the demand for duty and allowing the appeals with any necessary consequential reliefs.