1993 (8) TMI 197 - AT - Central Excise

Summary

Issues:
1. Entitlement to concessional assessment under Notification 175/86 for specified goods.

Analysis:
The appeal before the Appellate Tribunal CEGAT, Madras, involved the question of whether the appellants were entitled to the benefit of concessional assessment for specified goods under Notification 175/86, despite crossing the limit of Rs. 75 lakhs by aggregating the value of clearances at the tariff rate and concessional rate. The appellants argued that they should receive the benefit of the full value limit as specified in the Notification, irrespective of the sequence of clearances at duty paid or non-duty paid rates. They relied on previous Tribunal decisions to support their claim, emphasizing that the benefit of concessional assessment should be granted for the aggregate value specified in the Notification, regardless of the order of clearances. The Departmental Representative, however, supported the reasoning of the lower appellate authority in denying the benefit based on the crossed limit of Rs. 75 lakhs.

The Tribunal considered the arguments presented and reviewed relevant precedents, including the case of Purushotham Goculdas Plywood Co. The Tribunal noted that the eligibility for the benefit of exemption at a lower rate of duty was tied to the quantum of clearances of specified goods and total excisable goods cleared from the factory, as outlined in Notification 175/86. The Tribunal emphasized that the overall limit of the value of clearances from the factory had not been exceeded in the present case. It was crucial to determine whether the appellants fell within the prescribed limits of the Notification to qualify for the benefit. The Tribunal highlighted that the value of clearances of specified goods should not exceed Rs. 75 lakhs, whether at an exempted or concessional rate of duty. The Tribunal reiterated that the benefit of the concession should not be dependent on the sequence of clearances but should be viewed in the context of the total value allowed to be cleared at concessional or exempted rates. Relying on previous decisions, the Tribunal concluded that the appellants' plea should be allowed, as the benefit of the concession should be granted for the aggregate value specified in the Notification, leading to the allowance of the appeal.

In conclusion, the Appellate Tribunal CEGAT, Madras, allowed the appeal, holding that the appellants were entitled to the benefit of concessional assessment for specified goods under Notification 175/86, despite crossing the limit of Rs. 75 lakhs by aggregating the value of clearances at different rates, emphasizing that the benefit should be based on the total value allowed to be cleared at concessional or exempted rates rather than the sequence of clearances.