1994 (6) TMI 75 - AT - Central Excise

Summary

Issues: Classification list approval under Notification 83/83, Refund claim rejection, Denial of benefit under Notification 85/85

Classification list approval under Notification 83/83:
The appellants manufactured electric wires falling under TI 33B(ii) of the Central Excise Tariff and filed a classification list claiming duty exemption under Notification 83/83. The Assistant Collector approved the list without exemption due to clearances exceeding the limit of Rs. 25 lakhs for the year 1984-85. The lower appellate authority upheld the exemption denial but allowed the list to be effective from 1-4-1984. The Tribunal held that the appellants, having cleared goods continuously and within the prescribed limits, were entitled to the benefit of the notification. The proviso to the notification did not apply, and the appellants were granted relief with refund.

Refund claim rejection:
Following the earlier appeal, the appellants cleared goods and claimed a refund based on the duty structure outlined in Notification 83/83. The refund claim was rejected by the Assistant Collector due to clearances exceeding Rs. 25 lakhs in 1984-85. The Collector (Appeals) upheld the rejection. The Tribunal, however, found that the appellants met the conditions of the notification and were eligible for the claimed refund. The impugned orders were set aside, and the appeals were allowed with consequential relief of refund.

Denial of benefit under Notification 85/85:
The appellants were denied the benefit of Notification 85/85, which granted duty exemption or concessional rates for clearances up to Rs. 40 lakhs in 1985-86 if the preceding year's clearances did not exceed Rs. 75 lakhs. Despite meeting the previous year's limit, the denial was based on the current year's clearances exceeding Rs. 75 lakhs. The Tribunal held that the appellants, falling within the prescribed limits of the notification, were entitled to the benefit. The denial was overturned, and the appeals were allowed with refund relief granted to the appellants.