1998 (3) TMI 411 - AT - Central Excise

Summary

Issues:
1. Denial of benefit under Notification No. 53/88-C.E. for Metallised Plastic Films.
2. Requirement to prove production from duty-paid materials.
3. Interpretation of Notification conditions.
4. Verification of records for duty-paid materials.

Analysis:

The case involved a dispute regarding the denial of the benefit of Notification No. 53/88-C.E. to the manufacturers of Metallised Plastic Films on the grounds of non-satisfaction of conditions specified in the notification. The adjudicating authority had denied the benefit based on the failure to prove that the films were produced from goods falling under Tariff Heading Nos. 39.01 and 39.15 on which excise duty had been paid. The original authority upheld a duty demand due to lack of proof in this regard.

Upon appeal, the respondents succeeded, leading to the Revenue's appeal. The Revenue contended that the benefit was not limited to integrated units but extended to non-integrated units if they could demonstrate production from duty-paid materials falling under specified headings. The Board's Circular No. 44/90-CX3 clarified this aspect, emphasizing the need to establish the origin of the intermediate goods from duty-paid materials.

During the proceedings, the respondents' representative highlighted that their suppliers had purchased duty-paid materials, supporting their claim. The Tribunal acknowledged the need for verification and remanded the matter to ensure that the Metallised Plastic Films were indeed manufactured from duty-paid primary plastic materials falling under the specified headings. The Tribunal emphasized the importance of verifying records to ascertain compliance with the notification conditions.

In conclusion, the Tribunal allowed the appeal by way of remand, directing the Revenue to conduct a limited verification to confirm the production of Metallised Plastic Films from duty-paid primary plastic materials falling under Tariff Heading Nos. 39.01 to 39.15. The case underscored the significance of substantiating compliance with notification requirements through proper documentation and verification processes.