1990 (11) TMI 224 - AT - Central Excise

Summary

Issues:
Classification of product as Aluminium paste under Central Excise Tariff, Duty liability on intermediate product, Compliance with ISI specifications, Burden of proof on Revenue, Marketability of product, Time-barred demand in show cause notice.

Analysis:
The case involved a challenge to the order-in-appeal confirming duty demand on a product termed as Filter cake, alleged to be commercially known as Aluminium paste under Tariff Item No. 14-I(1). The appellant contended that the product was an intermediate substance for manufacturing pyro technic aluminium powder and not marketable as Aluminium paste. The Assistant Collector relied on a Chemical Examiner's report to confirm duty liability due to the rescinding of an exemption notification. The appellant disputed the classification, ISI specifications, and marketability of the product.

The appellant argued that the product did not meet ISI specifications and was captively consumed in a continuous process, thus not liable for duty. The Collector (Appeals) remanded the case for further examination, directing consideration of the product's compliance with ISI specifications. The Assistant Collector's subsequent order relied on personal observations, disregarding the remand directions and failing to address the appellant's contentions adequately. The appellant raised concerns about the method of manufacture, duty exemption, and lack of marketability evidence.

During the hearing, both parties presented their arguments, emphasizing the product's nature, duty liability, and marketability. The Tribunal analyzed the case, noting the continuous process of product usage and lack of evidence regarding marketability. Citing precedents and the burden of proof on the Revenue, the Tribunal found in favor of the appellant. It highlighted the lack of marketability evidence, time-barred show cause notices, and the failure to address the appellant's contentions properly. Consequently, the Tribunal allowed the appeal, setting aside the duty demand due to the product's captive consumption and absence of marketability evidence.