1988 (9) TMI 173 - AT - Central Excise

Summary

Issues:
Exemption from duty on PCC Poles under Notification No. 105/80 as amended by Notification No. 48/81-CE based on the value of capital investment in plant and machinery.

Detailed Analysis:

1. Exemption Claim and Value of Plant & Machinery:
The respondents claimed duty exemption on PCC Poles under specific notifications based on the value of capital investment in plant and machinery not exceeding Rs. 20 lakhs. The Assistant Collector added the value of a crusher, making the respondents ineligible for the concession. The Collector (Appeals) allowed the appeal, considering a Board's circular excluding the value of the generator set and moulds from the calculation of plant and machinery cost. The Revenue filed an appeal against this decision.

2. Arguments by the Appellant:
The learned SDR argued that the Board's circular does not have statutory power and that the generator set should be included in the plant and machinery cost. He emphasized that the term 'plant & machinery' encompasses all machinery for industrial use, citing a relevant Tribunal judgment to support his stance.

3. Arguments by the Respondents:
The respondents' consultant supported the Collector (Appeals) order, citing guidelines based on Ministry of Industry advice and relevant case laws. He contended that the generator set and moulds should be excluded as they are not consumable goods, unlike in other industries. He also mentioned that the stone crusher did not belong to the appellants.

4. Judgment and Reasoning:
The Tribunal deliberated on whether the Collector (Appeals) correctly applied the Board's circular to the case. The Tribunal noted the lack of a specific definition of 'plant & machinery' in the relevant notification and the need for clarification from the Central Board of Excise & Customs. It observed that the circular, although not specific to the notification in question, provided general guidance. The Tribunal upheld the Collector (Appeals) decision, emphasizing the exclusion of the generator set and moulds from the plant and machinery cost calculation.

5. Conclusion:
The Tribunal found no error in the Collector (Appeals) order, as it considered all relevant factors and correctly applied the Board's circular. Therefore, the appeal by the Revenue was dismissed, affirming the duty exemption for the respondents based on the revised calculation of the plant and machinery value.