2000 (5) TMI 55 - AT - Central Excise

Summary

Issues:
Interpretation of Central Excise Tariff entry 84.42 and Notification 201/87-C.E. dated 3-9-1987 for exemption eligibility.

Analysis:
The case involved an appeal by the Revenue challenging the Collector of Central Excise (Appeals) Bombay's decision granting exemption under Notification 201/87 to the product Design Printing Nickel Cylinders manufactured by the assessee. The Revenue argued that the notification only covers printing frames, not the goods manufactured by the assessee, leading to the dispute over exemption eligibility.

The Larger Bench considered conflicting views from previous cases regarding the interpretation of Notification 201/87. One case held that Nickel Perforated Rotary Screens/Cylinder were not covered by the notification, while another case concluded that Design Printing Nickel Cylinder Screen was entitled to the benefit. This conflict prompted the reference to the Larger Bench for resolution.

The Tribunal analyzed Central Excise Tariff entry 84.42, which encompasses machinery, apparatus, and equipment for printing purposes. It was acknowledged that the goods manufactured by the respondent fell within this entry and were used in printing textile goods, highlighting the relevance of the tariff entry to the case.

Notification 201/87-C.E. dated 3-9-1987 exempts printing frames falling under heading No. 84.42 when used in the printing of textile fabrics within the factory of production. The Tribunal emphasized that the notification's scope includes plates, cylinders, and other printing components mentioned in the tariff entry, rejecting the Department's attempt to restrict the term "printing frames" to flat frames only.

The Tribunal also discussed the relationship between Notification 64/86-C.E., Notification 201/87, and Notification 67/91-C.E., emphasizing the specific nature of the latter in relation to printing frames used in the textile industry. It was concluded that all printing frames used in printing textile fabrics were covered by Notification 201/87, rendering other notifications irrelevant in this context.

Based on the comprehensive analysis and interpretation of the relevant notifications and tariff entries, the Tribunal found no merit in the Revenue's appeals and dismissed them accordingly, upholding the decision granting exemption under Notification 201/87 to the product in question.