1989 (10) TMI 157 - AT - Central Excise

Summary

Issues: Revenue's appeal against Collector's order on classification list benefits under Notifications 175/86 and 138/86.

Analysis:
1. The appeals were filed by the Revenue challenging the Collector of Central Excise (Appeals), Madras' order dated 18-11-87 regarding the classification list benefits claimed by the respondents under Notifications 175/86 and 138/86. The issue arose due to an amending Notification (260/86) which restricted an assessee from availing benefits under both Notifications simultaneously.

2. The Collector (Appeals) held that an assessee availing benefits under Notification 175/86 could not simultaneously avail benefits under Notification 138/86 due to the introduction of an exemption clause in Notification 138/86 by Notification 216/86. The Collector emphasized that an assessee claiming benefits under Notification 175/86 cannot avail benefits under Notification 138/86 as per the amended provisions.

3. The Revenue raised two main grounds of appeal. Firstly, they argued that prior to 24-4-86, an assessee could avail benefits under both Notifications simultaneously, but post the amendment, they had to choose either 138/86 or 175/86. Secondly, they contended that the option was not restrictive to Notification 175/86, and an assessee could opt for 138/86 by opting out of 175/86, as exemplified by a specific case.

4. The Revenue further argued that the respondents had opted for the benefit of Notification 138/86, and the authorities had considered their choice accordingly. However, the respondents' consultant argued that since the appellants had only pleaded for the benefit of Notification 175/86, no demand could be raised against them.

5. The Tribunal observed that there was no restriction for the respondents to avail benefits under Notification 175/86 only, and they were free to choose either of the two Notifications. The Tribunal found no legal basis to force the respondents to opt for Notification 138/86 when they were eligible for benefits under Notification 175/86 as well. Therefore, the Tribunal upheld the order of the Collector (Appeals) and dismissed the appeals filed by the Revenue.