1994 (3) TMI 216 - AT - Central Excise

Summary

Issues:
Denial of exemption under Notification No. 272/79-C.E. for Asbestos Cement Products cleared to Kandla Free Trade Zone (KFTZ) without duty payment.

Analysis:
The appellants, manufacturers of Asbestos Cement Products, cleared goods to KFTZ under Notification No. 272/79-C.E. without duty payment. A show cause notice was issued proposing denial of exemption, stating that goods were not used for export production as required. The Assistant Collector upheld the denial, leading to an appeal before the Collector (Appeals).

Shri K.R. Mehta, representing the appellants, argued that the demand was partially time-barred and cited amendments to Notification No. 272/79-C.E. to support their eligibility for exemption. He contended that goods used in connection with goods exported were covered under the notification. Smt. J.M.S. Sundaram, for the respondents, supported the denial of benefit under the notification.

The Tribunal examined the notifications and found that the amendments expanded the scope to include goods used in connection with export production. The appellants' Asbestos Sheets, used for constructing a factory shed in KFTZ, were deemed to be used in connection with export production. The Tribunal agreed with the appellants' argument and set aside the lower authorities' orders, allowing the appeal and granting consequential relief if applicable.

Therefore, the Tribunal ruled in favor of the appellants, holding that the Asbestos Sheets used for construction in KFTZ were eligible for exemption under Notification No. 272/79-C.E. The decision highlighted the importance of the amendments and the interpretation of the notifications in determining the eligibility for duty exemption in such cases.