2000 (9) TMI 273 - AT - Central Excise

Summary

Issues:
1. Benefit of Notification No. 23/89-C.E. availability for the period 1-5-1989 to 31-8-1989.

Analysis:
The case involved the respondents, engaged in cement manufacturing, seeking the benefit of concessional duty under Notification No. 23/89-C.E. for the period 1-5-1989 to 31-8-1989. The Assistant Collector initially confirmed a demand for differential duty, which was later set aside by the Collector (Appeals), leading to the Revenue's appeal before the Tribunal.

The main issue before the Tribunal was whether the benefit of Notification No. 23/89-C.E. was available to the respondents for the specified period. The Notification exempted cement manufactured in a factory with a licensed capacity not exceeding 200 TPD from excess excise duty. The Revenue conceded that the concessional rate applied to units with capacity up to 200 TPD during the period in question.

The Assistant Collector had denied the benefit based on the production levels of the unit, indicating an installed capacity of 300 TPD. However, the Tribunal found that the licensed capacity, as per the industrial license, remained at 200 TPD, as confirmed by the Ministry in correspondence. The Tribunal upheld the lower appellate authority's decision, emphasizing the importance of strict interpretation of fiscal statutes and exemption notifications.

Additionally, the Tribunal referenced a Supreme Court decision to support the argument that the authorities' jurisdiction was limited to verifying the licensed capacity of the respondents. The Assistant Collector's actions were deemed beyond his jurisdiction, as he delved into matters not relevant to determining eligibility for the notification.

Ultimately, the Tribunal ruled that the respondents' licensed capacity for the disputed period was 200 TPD, making them eligible for the concessional duty as per Notification No. 23/89-C.E. The appeal was rejected, upholding the Collector (Appeals) order in favor of the respondents.