2009 (10) TMI 478 - AT - Central Excise

Bricks- Acid resistance- Notification No. 8/96-C.E., dated 23rd July, 1996- Notification No. 8/96-C.E., dated 23rd July, 1996. - Held that- While agreeing with the submission of the respondents before the Commissioner (Appeals), the lower appellate authority has observed that the bricks in question are unable to withstand in temperature higher than 1500 degree C. while the fire clay bricks can withstand in temperature higher than 1500 Degree C. and that the bricks in question would loose its shape and start breaking and melting at a temperature above 1000 Degree C. As against this the ground No. 6 contents that bricks in question admittedly comprises of fire clays, though verified only upto temperature of 900 to 1000 degree centigrade, the same were correctly categorized by the Asstt. Commissioner as fire clay bricks . One fails to understand how the Departmental Representative could contend that this ground gets support from the above quoted submission by the respondents. - In the course of the argument, it appeared as if Departmental Representative was not fully ready with the facts of the case. - Matters before the Tribunals involve Revenue running into Crores of rupees and, therefore, Government is expected to give necessary assistance to the Tribunal to decide the matter efficiently, effectively, expeditiously and correctly in accordance with provisions of law. In the absence of proper assistance, it may result in disposal of matters prejudicial to the interest of the Revenue. It is high time for the Government to realize the same and to take appropriate steps in that regard. Revenue appeal dismissed

Summary

Issues:
- Appeal against order denying exemption under Notification No. 8/96-C.E.
- Classification of acid resistant bricks as fire clay bricks.
- Failure of Departmental Representative to provide supporting material.
- Lack of proper assistance from the Government in tribunal matters.

Analysis:
1. Appeal against denial of exemption: The case involved an appeal against an order denying the benefit of exemption under Notification No. 8/96-C.E. to the respondents, who were engaged in the manufacture of excisable goods. The original authority had directed the payment of duty, which was contested by the respondents. The Commissioner (Appeals) allowed the appeal, setting aside the original authority's order. The Revenue then filed an appeal against this decision.

2. Classification of acid resistant bricks: The main grounds raised by the respondents in their appeal included arguments that acid resistant bricks were distinct from fire clay bricks due to their composition and inability to withstand high temperatures. They cited the Harmonized System of Nomenclature and expert opinions to support their claim. The Departmental Representative, however, contended that acid resistant bricks were essentially fire clay bricks and did not qualify for the exemption under the notification.

3. Failure to provide supporting material: During the proceedings, it was noted that the Departmental Representative failed to provide adequate supporting material for the grounds raised in the appeal. The Tribunal highlighted that the representative acknowledged the baselessness of certain grounds and appeared unprepared during the argument. This lack of preparation raised concerns about the efficient and effective handling of revenue-related matters before the Tribunal.

4. Lack of government assistance: The Tribunal expressed disappointment over the lack of proper assistance from the Government in tribunal matters involving significant revenue implications. Emphasizing the importance of efficient and correct decision-making in accordance with the law, the Tribunal directed the Registry to send a copy of the order to the Revenue Secretary and the Chairman of the Board, urging them to address the issue and ensure better support for tribunal proceedings.

5. Judgment: Ultimately, the Tribunal found no grounds to interfere with the order of the Commissioner (Appeals) and dismissed the appeal. The decision highlighted the importance of proper assistance and preparation in tribunal matters to avoid prejudicial outcomes and ensure the correct application of legal provisions.