1998 (1) TMI 119 - AT - Central Excise

Summary

Issues: Excisability and dutiability of 'Phenol Formaldehyde Solution'

The judgment pertains to a Department's appeal challenging the order of Collector (Appeals) regarding the excisability and dutiability of 'Phenol Formaldehyde Solution' used in the manufacture of industrial grade laminated sheets. The Department contended that the solution was excisable and not eligible for certain benefits under specific notifications. The Collector (Appeals) had previously ruled the goods as non-excisable and eligible for the benefit of Notification No. 201/79, causing grievance to the Department.

The respondents, in their written submissions, argued that the excisability issue had been settled in their favor based on previous tribunal orders and a Supreme Court judgment in the case of Moti Laminates. They highlighted that the solution was non-marketable and hence not subject to duty, as established in their own case by the Tribunal. The Department acknowledged that the Tribunal had indeed held the material to be non-excisable and non-dutiable, citing the Supreme Court's judgment in the case of Moti Laminates.

The Tribunal, after considering the submissions and legal precedents, upheld the Collector (Appeals)'s order. It relied on the Supreme Court's judgment in the case of Moti Laminates, which established that non-marketable materials were not liable to duty. The Tribunal also noted its previous order in the respondents' case, confirming the non-excisability of the solution. Consequently, the appeal of the Department was rejected, affirming the Collector's decision based on the legal principles established by the Supreme Court and followed by the Tribunal.