2004 (11) TMI 227 - AT - Central Excise

Summary

Issues:
1. Whether the benefit of Notification No. 5/98-C.E. is available to the goods manufactured by M/s. Indocom Projects Equipments Ltd.

Analysis:
In the appeal filed by M/s. Indocom Projects Equipments Ltd., the main issue was the availability of the benefit of Notification No. 5/98-C.E. to the goods they manufactured. The appellants manufactured machines falling under Chapter 84 and structures for tanks of iron and steel under Chapter 73 of the Schedule to the Central Excise Tariff Act. There was a dispute regarding the classification of the Bulk Mix Delivery System, with the appellants classifying it under Heading No. 8479.10 and the Department under Heading 87.05. The Department had confirmed the duty demand and imposed a penalty. The appellants did not challenge the classification under Heading No. 87.05 but argued that the benefit of the notification could be claimed at any stage. They contended that since the issue was related to product classification, no penalty should be imposed. The Departmental Representative supported the original findings.

Upon considering the submissions, the Tribunal upheld the classification of the Bulk Mix Delivery System under Heading No. 87.05. It agreed with the appellants that no penalty should be imposed as the issue was about product classification. The Tribunal set aside the penalty. Additionally, it noted that the eligibility of the product for the exemption under Notification No. 5/98-C.E. had not been examined by the lower authorities. Therefore, the matter was remanded to the Adjudicating Authority to determine if the benefit of the exemption was available to the product. The Adjudicating Authority was directed to provide a reasonable opportunity for the appellants to be heard. The appeal was disposed of accordingly.