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2022 (9) TMI 1275 - AT - Central ExciseEligibility for concessional rate of duty in terms of Notification No. 6/2011-CE dated 01.03.2011 - Perforated Nickel Cylinders (Screen) - HELD THAT - The very same issue has been decided by this Tribunal in STOVEC INDUSTRIES LTD VERSUS C.C.E. -AHMEDABAD-I 2021 (12) TMI 240 - CESTAT AHMEDABAD where it was held that the appellant has classified the impugned goods under CTH 844250 which includes Plates,cylinders and other printing components; . The appellant is entitles for benefit of Sno. 41 in list 2 of notification no. 06/2011-CE dated 01/03/2011. The appellant are entitled for the exemption Notification 6/2011-CE dated 01.03.2011 and subsequent exemption under Notification No. 12/2012-CE dated 17.03.2012 - Appeal allowed - decided in favor of appellant.
Issues Involved:
1. Classification of 'Perforated Nickel Cylinders (Screen)' 2. Eligibility for concessional rate of duty under Notification No. 6/2011-CE and subsequent Notification No. 12/2012-CE 3. Validity of the demand for recovery of duty and penalties Issue-wise Detailed Analysis: 1. Classification of 'Perforated Nickel Cylinders (Screen)': The appellant classified their product, 'Perforated Nickel Cylinders (Screen)', under Chapter heading 84425031, referring to it as parts or components of rotary/flat bed screen printing machines. The classification was crucial because it determined the applicable excise duty rate. The appellant argued that their product should be considered under Heading 84425031, which includes plates, cylinders, and other printing components, making it eligible for a concessional duty rate. 2. Eligibility for Concessional Rate of Duty: The appellant contended that their product was eligible for a concessional duty rate of 5% under Notification No. 6/2011-CE dated 01.03.2011, as parts or components of machinery specified in List II of the Notification. They cited that the rotary/flat bed screen printing machines were listed at Sr. No. 26, and their product, being a component of such machines, qualified for the concessional rate. The Tribunal referenced a previous decision in the case of Stovec Industries Limited, which had similar facts and issues, and concluded that the appellant's product was indeed eligible for the concessional rate. The Tribunal emphasized that the classification under CTH 844250, which includes plates, cylinders, and other printing components, had not been disputed by the Revenue, thus affirming the eligibility for the concessional rate. 3. Validity of the Demand for Recovery of Duty and Penalties: The Revenue had issued a Show Cause Notice proposing the recovery of duty amounting to Rs. 37,47,034/- under Section 11A(1) of the Central Excise Act, 1944, arguing that the appellant wrongly availed the benefit of Notification No. 6/2006-CE. The adjudicating authority confirmed the demand and vacated the claim of protest by the appellant. However, the Tribunal found that the decision in the case of Harish Industries Engineers, which the Revenue relied upon, was not applicable as it dealt with classification issues, not exemption eligibility. The Tribunal concluded that the appellant was entitled to the exemption notifications, rendering the demand and penalties unsustainable. Consequently, the impugned orders were set aside, and the appeals were allowed with consequential relief. Conclusion: The Tribunal's judgment comprehensively addressed the classification and eligibility for concessional duty of 'Perforated Nickel Cylinders (Screen)', affirming the appellant's stance. It distinguished the present case from the Harish Industries Engineers case, emphasizing the applicability of exemption notifications. The Tribunal set aside the demand for recovery of duty and penalties, granting relief to the appellant.
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