2023 (5) TMI 1075 - AT - Central Excise

Use of Brand name of others - Simultaneous availment of SSI exemption benefit under Notification No. 8/2003-CE dated 01.03.2003 and CENVAT Credit - branded goods manufactured by the Assessee and cleared as well as goods processed by it as job worker and cleared under brand name of others, against which duty had been paid and CENVAT Credits had been availed. HELD THAT - The law is not static and it changes with the changing need of time and the judgment of the Hon'ble Supreme Court, in view of operation of Article 141 of the Constitution of India, is the law of land. In the said COMMISSIONER OF CENTRAL EXCISE, CHENNAI VERSUS M/S. NEBULAE HEALTH CARE LTD. 2015 (11) TMI 95 - SUPREME COURT , while distinguishing other judgments including COMMISSIONER OF C. EX., AHMEDABAD VERSUS RAMESH FOOD PRODUCTS 2004 (11) TMI 103 - SUPREME COURT it was held that once excise duty is paid by the manufacturer on such branded goods manufactured, the brand name whereof belongs to another person, on job work basis, the SSI Unit would be entitled to Cenvat/Modvat credit on the inputs which were used for manufacture of such goods as on those inputs also excise duty was paid. To put it otherwise, these branded goods manufactured by the SSI Units meant for third parties are regulated by the normal provisions of excise law and will have no bearing or relevance insofar as availing the benefit of those exemption notifications in respect of its own products manufactured by the SSI Units is concerned. The period under dispute in this appeal is covered in N/N. 8/2003-CE. Having regard to the judicial precedent set by the Hon'ble Supreme Court in Nebulae Health Care Ltd. vis-a-vis insertion of proviso into the Notification w.e.f. 11.02.2009, Appellant is entitled to the SSI exemption available under Notification No. 8/2003-CE for clearance of its branded product and also entitled to avail CENVAT Credit on clearance of branded products of others cleared through payment of duty. Appeal allowed.

Summary

Issues:
Simultaneous availment of SSI exemption benefit under Notification No. 8/2003-CE and CENVAT Credit for branded goods manufactured by the Assessee and cleared by it, along with goods processed as a job worker and cleared under brand name of others.

Analysis:
The appeal focused on the Appellant's eligibility to avail SSI exemption under Notification No. 8/2003-CE while also claiming CENVAT Credit for branded goods manufactured for others. The Appellant, a manufacturer of excisable goods, had paid duty on clearances of others' branded goods and availed CENVAT Credits without separate accounts for exempted and dutiable finished goods. The duty demand imposed was challenged, citing a Tribunal decision and the Supreme Court judgment in Commissioner of Central Excise, Chennai Vs. Nebulae Health Care Ltd.

During the appeal hearing, the Appellant's Counsel referred to a Tribunal decision and argued against the sustainability of the duty demand based on the Nebulae Health Care Ltd. judgment. The Respondent's Authorized Representative supported the Commissioner (Appeals) order, emphasizing the absence of the Nebulae Health Care Ltd. judgment during that time.

The Tribunal highlighted the evolving nature of law and the binding nature of Supreme Court judgments under Article 141 of the Constitution. Referring to the Nebulae Health Care Ltd. judgment, the Tribunal clarified the application of SSI exemption and CENVAT Credit for branded goods manufactured for third parties. The Tribunal noted the amendment to Notification No. 8/2003-CE and concluded that the Appellant was entitled to both SSI exemption and CENVAT Credit for the disputed period covered by the Notification.

Conclusion:
The Tribunal allowed the appeal, setting aside the Commissioner of Central Excise (Appeals-III), Pune's order and providing consequential relief. The decision was based on the interpretation of the Nebulae Health Care Ltd. judgment, the Tribunal's previous findings, and the relevant Notification amendments, affirming the Appellant's entitlement to SSI exemption and CENVAT Credit for the specified goods.