1988 (5) TMI 166 - AT - Central Excise

Summary

Issues:
Liability of the appellant to duty for Carbon Electrode Paste produced during a specific period and eligibility for exemption under Notification No. 118/75 based on captive consumption.

Detailed Analysis:

1. The appeal dealt with the liability of the appellant to duty for Carbon Electrode Paste produced between 1-3-1975 to 29-4-1975 and their eligibility for exemption under Notification No. 118/75 based on captive consumption. The initial demand was confirmed by the Assistant Collector of Central Excise, Raipur, and upheld by the Collector of Central Excise (Appeals) New Delhi.

2. An application was made during the appellate stage to introduce additional evidence, including the Tenth Annual Report of the appellant, indicating the commissioning of the Smelter Plant in May 1975. The authenticity of the documents was acknowledged, and they were admitted as evidence to ensure justice between the parties.

3. The appellant did not contest producing 2013 Metric tonnes of Carbon Electrode Paste between 1-3-1975 to 29-4-1975 but claimed that the paste was captively consumed only after the Smelter plant started operating in May 1975, coinciding with the exemption notification.

4. The Tribunal reviewed the orders and observed that duty was demanded based on captive consumption between 1-3-1975 to 29-4-1975 when the exemption notification was not in force. It was noted that if the goods were produced but not removed or consumed during that period, there should be no duty liability. The absence of clear findings on how the goods were cleared or consumed during the specific period was highlighted.

5. The Tribunal found a lack of clear findings on whether captive consumption occurred only after the Smelter Plant began operating in May 1975. Additionally, the issue of the shorter time limit for raising demands and the limitation period for the demand were raised, requiring examination by the Assistant Collector of Central Excise upon remand.

6. Considering the documents presented by the appellant, the Tribunal set aside the previous order and remanded the matter to the Assistant Collector of Central Excise, Raipur, for a fresh assessment based on the directions provided. The appeal was allowed for remand, emphasizing the need for a comprehensive reconsideration of the issues at hand.