1999 (2) TMI 174 - AT - Central Excise

Latex mix manufactured by coir industry entitled to exemption under Notification No. 115/75-C.E.

Summary

Issues:
- Whether the benefit of Notification No. 115/75-C.E., dated 30-4-1975 is available for latex mix manufactured by a company.

Analysis:

The case involved two appeals questioning the availability of the benefit of Notification No. 115/75-C.E. for latex mix manufactured by a company. The Collector Central Excise confirmed a demand for central excise duty and imposed penalties, arguing that the latex mix was compounded rubber, not exempt under the notification, and that the company had suppressed facts. The company argued that being in the coir industry, they were eligible for the exemption. The Tribunal analyzed the notification, which exempted goods manufactured in specified industries, including coir industry. Referring to past judgments, the Tribunal held that goods manufactured in a specified industry should receive the benefit of the exemption, irrespective of the specific classification of the product. The Tribunal noted that the company was in the coir industry and thus eligible for the exemption, overturning the Collector's decision.

The Tribunal referred to the wording of Notification No. 115/75-C.E., which exempted excisable goods falling under the Central Excise Tariff Act schedule if manufactured in specified industries. The Tribunal highlighted that the company was in the coir industry, a specified industry in the notification, making them eligible for the exemption. Citing past Supreme Court and Tribunal judgments, the Tribunal emphasized that the plain language of the notification should be followed to grant exemptions to goods manufactured in specified industries. The Tribunal concluded that the company, being in the coir industry, was entitled to the exemption for the latex mix they produced, overturning the Collector's decision and allowing both appeals.