1999 (7) TMI 326 - AT - Central Excise

Summary

Issues:
1. Classification of untrimmed sheets under various notifications.
2. Applicability of Notification No. 1/93 to untrimmed sheets.
3. Exemption under Notification No. 42/94 for unwrought copper slabs.
4. Excisability of copper slag/dross and eligibility for Notification No. 19/88.

Analysis:
1. The appellants contested the classification of untrimmed sheets under different notifications. The Ld. Commissioner (Appeals) previously held that untrimmed sheets are marketable but eligible for concessions under specific notifications. The appellants argued that untrimmed sheets were not excisable as they were not marketable, relying on precedents emphasizing marketability as a criterion for excisability.

2. The Notification No. 1/93 was a focal point of contention regarding the applicability to untrimmed sheets. The appellants, being a Small Scale Unit, claimed entitlement to this notification even if untrimmed sheets were considered dutiable. They contended that as per the notification's provisions, the value of clearances of certain goods should not be included in the aggregate value, ensuring exemption if the value remained below the prescribed limit.

3. Regarding unwrought copper slabs, the appellants sought exemption under Notification No. 42/94, emphasizing their use in manufacturing trimmed sheets for utensils and handicrafts. The argument was made that the benefit should not be denied based on the indirect use of slabs through various manufacturing stages, citing a relevant tribunal decision to support their stance.

4. The excisability of copper slag/dross was another issue raised. The appellants argued that the goods were not excisable, citing a Supreme Court decision. Alternatively, they claimed eligibility for Notification No. 19/88 for the slag, asserting that any Modvat credit taken during the relevant period was irrelevant as none was availed by the appellants.

In the final judgment, the Tribunal ruled in favor of the appellants on all counts. It was held that untrimmed sheets were not chargeable to duty due to lack of evidence proving their marketability. Additionally, the benefit of Notification No. 1/93 was upheld, considering the captively consumed nature of untrimmed sheets. The unwrought copper slabs were deemed eligible for exemption under Notification No. 42/94, emphasizing their role as basic inputs for utensil and handicraft manufacturing. Finally, the excisability of copper slag/dross was negated, aligning with a Supreme Court decision, and the appeals were allowed with consequential relief granted to the appellants as per the law.