2003 (12) TMI 163 - AT - Central Excise

Summary

Issues:
Challenge to validity of impugned order-in-appeal allowing exemption under Notification No. 18/95-C.E. for plates, blocks, sheets, and strips of rubber.

Analysis:
The Revenue challenged the validity of the impugned order-in-appeal that granted the benefit of exemption under Notification No. 18/95-C.E. to the respondents. The issue revolved around whether the respondents had utilized the goods for the manufacture of soles, heels, or soles and heels combined for footwear as required by the notification.

The learned SDR argued that the respondents did not use the goods for the specified purpose and thus should not be entitled to the exemption. On the other hand, the learned Counsel supported the impugned order, emphasizing its correctness.

Upon review, the Tribunal noted that the respondents were engaged in manufacturing rubber hose pipes and sheets, with no evidence suggesting that the goods were not intended for making footwear components. The Department alleged that the goods were diverted for footwear repairs, but this claim was not substantiated. The Tribunal held that the goods were indeed used for manufacturing soles or heels for footwear, meeting the condition of the exemption notification.

The Tribunal emphasized that even if the goods were used by buyers for footwear repairs, it did not imply a violation of the notification's condition. Repairing footwear typically involves attaching soles and heels, aligning with the intended use specified in the notification. Therefore, the impugned order, which granted the benefit of the notification to the respondents, was deemed lawful and upheld by the Tribunal.

Conclusively, the appeal by the Revenue was dismissed as lacking merit, affirming the decision to allow the exemption under the notification to the respondents.