2003 (12) TMI 192 - AT - Central Excise

Summary

Issues:
Exemption under Notification No. 88/88-C.E. for units located in rural area.

Analysis:
The judgment involved two appeals by Women's societies owning Small Scale Industrial (SSI) units for manufacturing electronic voltage stabilizers and UPS in Maradu Village, Ernakulam District. Both appellants claimed exemption under Notification No. 88/88-C.E., which exempted duty on electronic voltage stabilizers produced in a rural area. The dispute centered around whether Maradu Village was classified as a rural or urban area based on land revenue records. The appellants argued that no official notification declared Maradu as urban, while the Revenue referred to a certificate classifying Maradu as an urban area based on 1991 Census records.

The Commissioner (Appeals) initially acknowledged the appellants' argument but later concluded that Maradu was an urban area based on specific government notifications. These notifications identified Maradu as part of a metropolitan area and under the Greater Cochin Development Authority, leading to the denial of exemption under the notification.

The appellants contended that the village officer's certificate confirmed Maradu as a panchayat area, not under a municipality or corporation. The Tribunal emphasized that the key factor for exemption eligibility was the issuance of a notification by the State or Central Government declaring the area as urban. The absence of such notification made it challenging to determine Maradu's classification definitively. The Tribunal highlighted that a metropolitan area could include rural areas and that certificates alone were insufficient without official government notifications.

Ultimately, the Tribunal remanded the matter to the adjudicating authority to ascertain if any notification had been issued by the appropriate Government regarding Maradu's classification. The Tribunal allowed the appeals by way of remand, emphasizing the necessity of a formal notification to determine whether the units were situated in a rural or urban area for exemption eligibility under the notification.