9911796707
|
Home
Issues:
Whether duty exemption under Central Excise Notification No. 191/79 was admissible for ammonia supplied but not returned for the manufacture of heavy water. Analysis: The appeal challenged the Order-in-Appeal passed by the Collector of Central Excise, Calcutta, regarding the duty exemption for ammonia supplied to the Heavy Water Plant but not returned. The main issue was whether the benefit of the notification was applicable in this scenario. The lower authorities had denied the benefit, leading to the appeal. The notification exempted ammonia from excise duty subject to specific conditions, including following the procedure in Chapter X of the Central Excise Rules. It required the Assistant Collector to ensure that the goods were used or returned as specified. The dispute arose because the ammonia supplied was not returned to the appellants as per the notification's conditions. The appellants argued that the supplied ammonia was used during the Heavy Water Plant's trial runs before commissioning, as confirmed in letters and affidavits. They relied on precedents where duty exemptions were allowed for goods used during trial runs even if the final product was not produced. The appellants also highlighted an amendment to the notification that clarified the exemption for ammonia used in testing and commissioning. The Tribunal considered the submissions and previous decisions, noting that goods used during trial runs were eligible for exemption under notifications. Additionally, the Tribunal referenced a case where the responsibility for duty payment was on the recipient of the goods, not the manufacturer, if the goods were not accounted for as per the designated purpose. Based on the discussions and precedents cited, the Tribunal set aside the lower authorities' orders, providing relief to the appellants. The Tribunal also dismissed the Revenue's cross-objection, as it was unfounded and unnecessary given the favorable outcome for the Revenue in the Collector's order.
|
