1987 (6) TMI 161 - AT - Central Excise

Summary

Issues:
1. Legality of order confirming demand of Central Excise duty for Extra Hard Oil.
2. Classification of Extra Hard Oil under Tariff Item 12 or 13.
3. Application of retrospectively amended Rules 9 and 49 of Central Excise Rules.
4. Exemption under Notification No. 33/63.
5. Interpretation of processed oil at an intermediate stage as goods.

Analysis:
1. The appeals questioned the legality of an order confirming the demand of Central Excise duty for Extra Hard Oil used in the manufacture of Extra Hard, Hydrogenated Oil. The Collector (Appeals) partially upheld the demand raised by Show Cause Notices, leading to the appeal.

2. The issue of classification arose as the Show Cause Notices alleged that Extra Hard Oil fell under Tariff Item 12, contrary to the appellants' clearance under Item 13. The lower authorities confirmed the demand based on processed oil at an intermediate stage, invoking Notification No. 33/63, despite the appellants' continuous integrated manufacturing process.

3. The appellants contested the application of retrospectively amended Rules 9 and 49 of Central Excise Rules, arguing that the demands were not justified. They relied on legal precedents and exemption notifications to support their position.

4. The exemption under Notification No. 33/63 was waived by the appellants, emphasizing the incorrect levy and assessment of goods under a particular Tariff Item, as established in previous court decisions.

5. The interpretation of processed oil at an intermediate stage as goods was a crucial point of contention. The appellants argued that such oil did not qualify as goods under Central Excise Law, citing legal precedents to support their stance.

6. The Tribunal, considering the legal position and precedents, upheld the demand against the appellants, classifying Extra Hard Oil under Tariff Item 12 based on recent decisions. The demand was deemed legally sound and deserving of confirmation, despite the shifting stand of lower authorities.

7. Consequently, the arguments regarding different grounds for Show Cause Notices, classification under different Tariff Items, and the nature of processed oil at an intermediate stage were deemed irrelevant in light of the legal clarity provided by recent decisions.

8. The Tribunal upheld the demands confirmed by the lower Appellate authority, albeit for different reasons, emphasizing the correct legal position at the time of the hearing.

9. Ultimately, the appeals were dismissed, affirming the legality of the demand for Central Excise duty on Extra Hard Oil under Tariff Item 12, as per recent legal interpretations and precedents.