9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (7) TMI 422 - AT - Central ExciseCaptive consumption - denial of benefit of N/N. 67/95-E dated 16.03.1995 - IC engines which are captively consumed in the manufacture of PD Pumps - HELD THAT - The learned Principal commissioner has decided the matters solely relying upon the judgments of M/s. Honda Seil Power Products Ltd 2015 (11) TMI 322 - ALLAHABAD HIGH COURT delivered by the Hon ble High Court of Allahabad. From the said judgment it is observed that if the PD Pumps and IC Engines are not assembled and kept together in one packing and cleared that activity does not amount to manufacture. However, in the present case it is the claim of the appellant that in majority of cases the IC Engine has been fitted with the PD Pumps and the PD Pump set was cleared duly assembled with IC Engine. Therefore, the fact of the case of M/s. Honda Siel Power Products Ltd judgment is different from that of the present case. It is also observed that as regard the Monoblock Pumps there is no dispute that the IC Engine was used in the manufacture of Monoblock Pumps. Therefore, the interpretation and contention applied in the case of PD Pump will not apply in the case of Monoblock Pump. Therefore, there is an error in the order to this effect. The impugned order suffers from various infirmity, accordingly the matter needs to be reconsidered on all the issues - Appeal disposed off by way of remand.
Issues:
1. Whether the Appellants are eligible for exemption from excise duty under Notification No.67/95-E dated 16.03.1995 for IC engines used in the manufacture of PD Pumps. 2. Whether the activities undertaken by the Appellants amount to manufacturing under Note 6 to Section XVI of the Central Excise Tariff Act. 3. Whether the demand for Central Excise duty on IC engines captively consumed in the manufacture of PD Pumps is sustainable. 4. Whether the demand for the period June 2014 to April 2014 is barred by limitation. Analysis: 1. The Appellants, engaged in manufacturing Power-Driven Pumps (PD Pumps) and Ignition Combustion Engines (IC Engines), claim exemption from excise duty for IC engines used in PD Pumps under Notification No.67/95-E. The dispute arises from the denial of this exemption, alleging that PD Pumps do not arise from a manufacturing process. The Appellants argue that the IC engines are captively consumed in PD Pumps manufacturing, supported by evidence of bifurcation of PD Pumps cleared in assembled vs. SKD condition. The demand for duty is based on the contention that the coupling of IC engines to bought-out pumps does not constitute manufacturing, citing a judgment and an investigation. The Principal Commissioner upheld most demands, leading to the current appeals. 2. The Appellants argue that the Principal Commissioner erred in relying solely on a judgment without considering the differences between the cases. They contend that the PD Pumps were mostly cleared with IC engines assembled, distinguishing them from the cited judgment. They assert that the IC engines qualify for the exemption under Notification No.67/95-E and challenge the quantification of duty demand. The Appellants also claim that the demand for the period in question is time-barred due to no suppression of facts. They cite various similar cases where demands were set aside, arguing that the Principal Commissioner's differing view is incorrect. 3. The revenue, represented by the Assistant Commissioner, supports the findings of the impugned order, which heavily relied on the judgment mentioned earlier. The Appellants' argument that the IC engines were mostly cleared with PD Pumps assembled is noted, highlighting a distinction from the cited judgment. The Tribunal observes discrepancies in the treatment of Monoblock Pumps, where the IC engine's use is undisputed, suggesting an error in the order. The Tribunal agrees with the Appellants that the case requires reconsideration on all issues due to the identified infirmities, remanding the matters for fresh adjudication. 4. The Tribunal sets aside the impugned order and remands the case to the adjudicating authority for a fresh decision, considering the observations made. The matter is to be reconsidered comprehensively in light of the issues raised by both parties. The judgment is pronounced on 01.07.2024 by the Hon'ble Members of the Tribunal.
|
