2005 (1) TMI 246 - AT - Central Excise

Summary

Issues involved: Interpretation of Notification 33/99-C.E., validity of certificates from Chartered Engineer, suppression of actual installed capacity, duty recovery, imposition of penalty.

Interpretation of Notification 33/99-C.E.: The Assessee, engaged in Tea and Wastes manufacture, sought benefit under Notification 33/99-C.E. based on certificates from a Chartered Engineer indicating a 30% increase in factory capacity due to new machines.

Suppression of actual installed capacity: The Department alleged the Assessee suppressed capacity to claim exemption, leading to a demand of duty refund along with interest. The Commissioner upheld the charges, but Revenue was dissatisfied with the absence of a penalty.

Validity of certificates from Chartered Engineer: The Tribunal noted the Department's claim of fabricated certificates but found no discrepancies in the expert's reports. The Tribunal emphasized the need for opposing expert opinion to challenge the Chartered Engineer's findings, ultimately ruling in favor of the Assessee.

Duty recovery and penalty imposition: Given the Assessee's eligibility under Notification 33/99, the Tribunal set aside duty recovery and rejected the need for penalty or interest, leading to the dismissal of Revenue's appeal and allowance of the Assessee's appeal.

Conclusion: The Tribunal allowed the Assessee's appeal, dismissed Revenue's appeal, and set aside the Commissioner's orders regarding duty recovery, penalty, and interest.