2000 (5) TMI 82 - AT - Central Excise

Summary

Issues: Revenue's appeal against order-in-appeal reversing order-in-original disallowing exemption benefits under Notification No. 175/86-C.E.

The judgment pertains to an appeal filed by the Revenue against the order-in-appeal that reversed the order-in-original disallowing the benefit of exemption under Notification No. 175/86-C.E. The respondents were engaged in manufacturing branded goods under the brand name 'Bush' and non-branded goods under their own name 'Star & Pioneer.' The Assistant Collector disallowed the exemption benefit for goods manufactured under the respondents' own brand name, citing the availing of Modvat credit in one of their products. The Commissioner (Appeals) reversed the Assistant Collector's decision. The Revenue appealed to the Tribunal, where the respondents did not appear for the hearing. The respondents claimed Modvat credit for inputs used in branded goods and exemption under Notification No. 175/86-C.E. for goods manufactured under their own brand name, as they were registered as Small Scale Industry (SSI) units and had not exceeded the prescribed limit. The Tribunal noted that the notification did not prohibit simultaneous claims of Modvat credit and exemption benefits. The Tribunal upheld the Commissioner's decision, stating that the wording of the notification allowed the respondents to avail both benefits concurrently. The appeal by the Revenue was dismissed, finding no legal basis to interfere with the Commissioner's decision.

In summary, the key issue in this case was whether the respondents could claim both Modvat credit and exemption benefits under Notification No. 175/86-C.E. for goods manufactured under their own brand name. The Tribunal ruled in favor of the respondents, allowing them to avail both benefits simultaneously as the notification did not prohibit such concurrent claims.