2003 (10) TMI 204 - AT - Central Excise

Summary

Issues:
Benefit of Notification No. 1/95-C.E. dated 4-1-1995 to respondents for goods used in manufacturing false ceiling.

Analysis:
The appeal filed by the Revenue against the impugned order-in-appeal revolves around the issue of whether the respondents are entitled to the benefit of Notification No. 1/95-C.E., dated 4-1-1995 for the goods used in the production of a false ceiling. The goods in question were utilized by the respondents to construct a false ceiling to control humidity and temperature for producing high-quality cotton yarn. The adjudicating authority and the Commissioner (Appeals) both concluded that the goods were indeed used for this purpose. The Commissioner (Appeals) relied on precedents such as Sri Rama Spinners (P) Ltd. v. CCE, Gontermann Peipers (India) Ltd. v. CCE, Pearl Polymers Ltd. v. CCE, and M/s. Jawahar Mills Ltd. v. CCE to support their decision. The Commissioner (Appeals) upheld the findings, stating that the goods were brought into the factory for the manufacture of the final products, thus entitling the respondents to the exemption granted under Notification No. 1/95-C.E.

The Tribunal found that the impugned order passed by the Commissioner (Appeals) was valid and upheld the same. The Tribunal dismissed the appeal filed by the Revenue, affirming the decision that the respondents were eligible for the benefit of the Notification No. 1/95-C.E. The Tribunal's decision was based on the specific findings that the goods were used to construct a false ceiling to control environmental conditions for the production of cotton yarn, aligning with the purpose of the exemption provided under the said notification. The Tribunal noted that no contradictory law was presented to challenge the findings and the application of the Notification. Therefore, the Tribunal upheld the decision in favor of the respondents, granting them the benefit of the exemption under Notification No. 1/95-C.E.