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2000 (3) TMI 370 - AT - Central Excise
Issues:
1. Duty demand confirmation on jute intermediates consumed in the manufacture of final products. 2. Dispute over the application of specific serial numbers in the Notification for cess payment on hessian and sacking bags. Issue 1: The authorities confirmed a duty demand of Rs. 1,85,498.37 as cess on jute intermediates consumed in manufacturing final products, relying on a Supreme Court decision. The appellants received 15 show-cause notices for duties on various items used in making hessian and sacking bags. The Revenue treated the payment of cess on bags as payment on cloth, demanding duty under serial No. 7 of a 1982 Notification. The appellants did not dispute the Supreme Court judgment's application but argued that cess on bags, correctly paid under different serial numbers, should not be confirmed again. The Revenue contended that the appellants paid cess on cloth only, justifying the demand on bags under serial No. 7. The Tribunal held that the appellants should pay cess on bags under serial No. 2 and 3, not serial No. 7, remanding the matter for quantification. Issue 2: The dispute centered on whether cess on hessian and sacking bags should be charged under specific serial numbers in the Notification. The appellants argued for cess payment under serial No. 2 and 3, citing a Trade Notice classifying sacking bags and hessian bags under these serial numbers. A previous Tribunal decision supported this classification, demanding differential cess based on serial No. 7, which was found incorrect. The Tribunal agreed with the Trade Notice, holding that hessian and sacking bags should be charged under serial No. 2 and 3, not serial No. 7, directing the original authority to quantify the cess accordingly. This comprehensive analysis of the judgment addresses the duty demand confirmation and the dispute over the application of specific serial numbers for cess payment on hessian and sacking bags, providing a detailed understanding of the legal issues involved and the Tribunal's decision.
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