2001 (1) TMI 139 - AT - Central Excise

Summary

Issues: Determination of whether the stoneware pipes were salt glazed or slip glazed.

Analysis:
1. The respondent, engaged in the manufacture of stoneware pipes, claimed that their products were salt glazed and thus eligible for nil duty under Notification No. 39/97-C.E. The department alleged that the goods were slip glazed stoneware pipes, serving four show cause notices totaling Rs. 14.39 lakhs for duty. The Central Glass and Ceramic Institute, Khurja, confirmed the respondent's claim of salt glazing. The Assistant Commissioner accepted this report and dropped the proceedings. The Revenue appealed to the Commissioner, who also upheld the salt glazing classification. The Revenue challenged this decision.

2. The central issue was whether the stoneware pipes were salt glazed or slip glazed. The Central Glass and Ceramic Research Institute, Khurja, confirmed salt glazing, supported by the respondent's manufacturing process. The Revenue failed to provide evidence contradicting this, relying on a vague reference in a book. The Tribunal noted the lack of substantive evidence to support the Revenue's claim, deeming the appeal baseless due to the absence of proof against salt glazing.

3. Post the Commissioner's decision, the wares were tested by the Central Revenue Control Laboratory, New Delhi, which also confirmed salt glazing. Despite this report, the Revenue did not withdraw the appeal. The Tribunal criticized the Revenue for harassing the respondent without substantial grounds, especially since the Commissioner had already determined the products to be salt glazed. The Tribunal deemed the appeal vexatious and ordered the Revenue to pay a cost of Rs. 10,000 to the respondent, suggesting potential recovery from responsible officers by the Central Government.

4. The Tribunal found the Revenue's appeal to be unfounded and vexatious, lacking evidence against the respondent's salt glazing claim. The Tribunal dismissed the appeal, imposing a cost on the Revenue for their baseless actions. The decision highlighted the need for authorities to conduct thorough investigations before initiating legal proceedings, emphasizing the consequences of filing frivolous appeals.