1988 (12) TMI 182 - AT - Central Excise

Summary

Issues Involved:
The issues involved in the judgment are the condonation of delay in filing Supplementary Appeals by the Department and the dispute regarding the payment of Central Excise duty on Cement Concrete Poles destroyed during quality control testing within the factory.

Condonation of Delay:
The Tribunal considered six applications for condonation of delay related to the filing of Supplementary Appeals by the Department. The main consolidated appeal against the impugned Order-in-Appeal was filed within the prescribed time-limit. The delay was condoned as the Respondents did not oppose the applications, and the supplementary appeals were taken on record.

Payment of Central Excise Duty:
The central issue in the seven appeals was whether Central Excise duty is payable on Cement Concrete Poles destroyed during quality control testing within the factory. The Department argued that duty was required to be paid as the poles were fully manufactured before testing and no exemption notification existed for such testing. However, the Tribunal disagreed with this contention.

Quality Control Testing and Duty Payment:
The Cement Concrete Poles were intended for supply to the UP State Electricity Board under specific contracts. The poles had to pass quality control tests before delivery, with about one percent of the poles randomly selected for testing. Only after passing these tests were the poles considered fit for delivery. The Tribunal held that duty was not payable on poles destroyed during mandatory quality control tests, as they were not yet fully manufactured or fit for delivery.

Exemption Notification Requirement:
The Tribunal clarified that the necessity for an exemption notification arises only after goods have been fully manufactured and utilized. Since the quality control testing occurred before the goods were fit for delivery, no duty was payable at that stage.

Decision and Dismissal of Appeals:
After considering the submissions and records, the Tribunal found no merit in the appeals and dismissed all seven of them. The judgment was pronounced in open court.