1997 (8) TMI 163 - AT - Central Excise

Summary

Issues:
1. Eligibility of goods described as backers, bolsters, and die-rings for exemption under Notification 58/86.
2. Eligibility of ash, dross, and skimmings under Notification 119/86-C.E.

Issue 1 - Eligibility of goods under Notification 58/86:
The dispute revolved around the classification of backers, bolsters, and die-rings under sub-heading 8202.90 and their eligibility for exemption under Notification 58/86. The Tribunal noted that these items were not challenged in terms of classification but rather the denial of exemption under the Notification. The Notification specifically exempts tools like extrusion dies for metals falling under Chapter 82, intended for use in the same factory or another factory of the same manufacturer. However, backers, bolsters, and die-rings were deemed not to fall under the category of tools covered by the Notification. Despite being supporting tools for extrusion dies, they were not considered as goods described in the Notification. Therefore, the Tribunal upheld the lower authority's decision, denying the benefit of Notification 58/86 to these items.

Issue 2 - Eligibility of ash, dross, and skimmings under Notification 119/86-C.E.:
The second issue focused on the classification and eligibility of ash, dross, and skimmings under Notification 119/86-C.E. The Collector (Appeals) had contended that if Modvat credit on inputs was availed, the goods would attract duty at 12% ad valorem. However, the Tribunal disagreed with this interpretation, citing precedents that availing Modvat credit does not alter the duty paid status of inputs. The Notification in question, 119/86, did not impose any restriction against availing Modvat credit on inputs. Therefore, the Tribunal held that the goods falling under sub-heading 2602.00, including ash, dross, and skimmings, were entitled to the benefit of exemption under Notification 119/86-C.E. Consequently, the Tribunal ruled in favor of the appellants on this issue.

In conclusion, the Tribunal dismissed the appeal while upholding the lower authority's decision regarding the eligibility of backers, bolsters, and die-rings under Notification 58/86. However, the Tribunal ruled in favor of the appellants concerning the eligibility of ash, dross, and skimmings under Notification 119/86-C.E.