1998 (12) TMI 282 - AT - Central Excise

Cement - Benefit of Notification No. 23/89-C.E. amended by Notification No. 123/89-C.E. not available.

Summary

Issues involved:
1. Interpretation of Notification No. 23/89 for central excise duty benefit on cement manufactured by a company.
2. Determining the licensed capacity of the manufacturing plant for eligibility under the notification.

Issue 1: Interpretation of Notification No. 23/89:
The appeal filed by Revenue questioned the availability of the benefit of Notification No. 23/89 for cement manufactured by the company. The Assistant Collector confirmed the demand of central excise duty, denying the benefit of the notification due to the absence of a certificate of licensed capacity issued by the appropriate authorities. The Collector (Appeals) had initially extended the benefit to the company, but the Revenue contended that the licensed capacity exceeded 200 TPD, making them ineligible for the notification. The Government had approved the recognition of the 300 TPD capacity subject to certain conditions, including pollution control measures and equipment installation. The company had claimed a capacity of 300 TPD in official communications, leading to the conclusion that the benefit of the notification was not applicable to them during the relevant period.

Issue 2: Determining licensed capacity for eligibility:
The Tribunal analyzed the records and submissions to ascertain the licensed capacity of the manufacturing plant. It was observed that the Collector (Appeals) had focused on the absence of formal endorsement of the 300 TPD capacity on the license, overlooking the approval granted by the Government in 1987 for the installed capacity. The company had applied for recognition of the 300 TPD capacity, and the Government had conveyed approval, subject to specific conditions. The company itself had claimed the capacity to be 300 TPD in official correspondence. Considering these facts and the approval granted by the Central Government, it was established that the licensed capacity indeed exceeded 200 TPD, rendering the company ineligible for the benefit of Notification No. 23/89. Consequently, the appeal filed by Revenue was allowed.

This detailed analysis of the judgment highlights the key legal aspects and reasoning behind the decision regarding the interpretation of the notification and the determination of licensed capacity for central excise duty benefit on cement manufacturing.