2005 (10) TMI 151 - AT - Central Excise

Summary

Issues:
Classification of wires and cables for concessional rate of duty under Notification No. 78/90.

Analysis:
The appellants, engaged in the manufacture of wires and cables, claimed a concessional rate of duty under Notification No. 78/90 for supplying to a specific entity based on a certificate from the Gujarat Pollution Control Board. The Department issued a show cause notice for recovery of differential duty, citing reasons such as the certificate being signed by the Deputy Secretary in the State Ministry instead of the Central Government as prescribed in the Notification, and wires and cables not being listed in the Notification's schedule.

The adjudicating authority initially dropped the proceedings, acknowledging the certificate's compliance with the Notification's conditions and considering wires and cables covered based on a Board's Circular. However, the order was reviewed, and the matter was appealed to the Commissioner (Appeals), who interpreted the Notification to apply only to Pollution Control Equipments manufacturing units and remanded the issue for further consideration.

Upon hearing both sides, the Tribunal found merit in the appellants' argument that the grounds for denial of the concessional rate of duty differed between the show cause notice and the appeal to the Commissioner. As the Order-in-Appeal exceeded the scope of the show cause notice, the Tribunal deemed it unsustainable, setting it aside and allowing the appeal.