1991 (10) TMI 154 - AT - Central Excise

Summary

Issues: Rectification of Order for Grant of Small Scale Industry Exemption

In this judgment by the Appellate Tribunal CEGAT, CALCUTTA, the main issue revolves around two Rectification Applications filed by M/s. Ma Tara Rope Works and M/s. R.P. Wires & Fencings seeking rectification of a common order passed by the Tribunal. The applicants sought the grant of deemed modvat credit on inputs, which was initially denied. They now seek rectification to consider their alternative plea for the grant of exemption available to small scale industries, which was not previously addressed in the order.

Analysis:

The applicants, represented by Shri S.K. Bagaria, argued that their alternative plea for small scale industry exemption was not considered by the Tribunal in the previous order. Despite raising this plea before the Assistant Collector and the Collector (Appeals), it was overlooked. The applicants' advocate emphasized their eligibility for the small scale industry exemption benefit and requested the order to be amended to include consideration of this plea. He referenced a previous case involving M/s. S.K. Ropes where a similar plea was remanded to the Assistant Collector for decision.

On the opposing side, Shri M.N. Biswas, representing the respondent Collector, opposed the prayer for rectification of the order, indicating a disagreement with the applicants' request.

After considering both arguments, the Tribunal acknowledged an apparent mistake in the previous order and decided to amend it by adding a new paragraph. The added paragraph directed the remand of the matter to the Assistant Collector for a decision on the small scale industry exemption benefit plea. Additionally, the Tribunal noted that Reference Applications had been filed for certain legal questions, which were allowed for reference to the High Court of Calcutta. The Tribunal instructed the department to take suitable steps regarding the relief under the small scale exemption Notification.

Ultimately, the Tribunal allowed the two Rectification Applications, granting the applicants the opportunity for the consideration of the small scale industry exemption benefit alongside the previously sought deemed modvat credit.