1985 (9) TMI 246 - AT - Central Excise

Summary

Issues:
Claim of benefit under Notification No. 80/80-C.E. for plywood manufactured in 1981-82.
Consideration of various goods for the limit of Rs. 20 lakhs under the notification.
Exclusion of sawn timber from the total value of clearances.
Validity of Tribunal's decision regarding sawn timber as an excisable product.
Challenge to the Tribunal's previous decision by the Department.
Interpretation of the definition of excisable goods.
Applicability of the exemption under Notification No. 80/80.

Analysis:
The appeal pertains to the appellant's assertion that they were eligible for the benefit of Notification No. 80/80-C.E. for plywood produced in 1981-82, subject to a clearance value limit of Rs. 20 lakhs. The total value of various goods cleared by the appellants exceeded the threshold, including plywood for teachests, teachest battens, sawn timber, and fuel wood. The lower authorities rejected the appellant's argument that goods exempt under a separate notification should not be considered excisable. The appellant's advocate contended that sawn timber should be excluded from the calculation based on a previous Tribunal decision, allowing similar relief in a different case for the year 1983-84.

The Department's representative did not dispute the similarity with the previous case but questioned the correctness of the Tribunal's decision regarding sawn timber's excisability. The Department challenged the Tribunal's interpretation that sawn timber was not a distinct excisable article, arguing that any residue or by-product emerging during manufacturing should result in a new excisable product. The Department sought to overturn the Tribunal's decision based on the nature of the final product and the emergence of new commodities during processing.

The appellant's advocate countered the Department's argument by emphasizing that challenging the Tribunal's previous decision was not permissible before the Tribunal itself. The Tribunal, after considering the submissions, upheld its earlier decision and rejected the Department's contention that sawn timber should be considered an excisable product. The Tribunal affirmed that the value of sawn timber should be excluded from the clearance value for applying the Rs. 20 lakhs ceiling under Notification No. 80/80, granting the appellants the associated relief.

In conclusion, the Tribunal maintained consistency with its prior ruling and affirmed that sawn timber should be excluded from the calculation for the exemption under Notification No. 80/80. The appeal was allowed in favor of the appellants, providing them with the intended relief as per the notification.