2001 (9) TMI 194 - AT - Central Excise

Summary

Issues involved: Denial of benefit under Notification No. 5/98-C.E. due to non-fulfillment of conditions at the time of clearance of cross reel hank yarn.

Summary:

Issue 1: Denial of benefit under Notification No. 5/98-C.E.
The appeal by M/s. Rajasthan Rajya Sahakari Spg. & Wvg. Mills Federation Ltd. was denied the benefit of Notification No. 5/98-C.E. as the conditions were not fulfilled at the time of clearance of the cross reel hank yarn. The Commissioner Central Excise (Appeals) held that subsequent production of certificates would not regularize the assessment. The appellant, being a State Government Undertaking, argued that the yarn was supplied under proper orders from the National Handloom Development Corpn. Ltd., a Government of India Undertaking. The authenticity of the certificates procured subsequently could be verified by Central Excise officers.

Issue 2: Discrepancies in certificates
The Senior Departmental Representative (SDR) pointed out discrepancies in the certificates produced later, emphasizing that the requisite requirements were not met at the time of clearances. The orders of the Commissioner of Central Excise (Appeals) were deemed correct based on this discrepancy.

Resolution:
After considering arguments from both sides and reviewing the facts, the Appellate Tribunal decided that the matter should be reexamined by the jurisdictional adjudicating authority. The authority was instructed to refer to records maintained by the appellant and the National Handloom Development Corpn. Ltd. If all necessary details are available without discrepancies, the condition of prior submission of certificates could be relaxed. The case was remanded to the adjudicating authority for fresh consideration, allowing the appellants an opportunity to present their case before final orders are passed. The appeal was allowed by way of remand.