2001 (2) TMI 354 - AT - Central Excise

Summary

Issues:
1. Classification of the product under Chapter sub-heading 4410.90 or 4408.90.
2. Admissibility of Modvat credit for duty paid inputs.
3. Claiming benefit as a Small Scale Industry (SSI) Unit under Notifications 175/86 and 1/93.
4. Time-barred demand of duty for the period from 1-4-1989 to 19-3-1990.

Analysis:
1. The appeal involved a dispute regarding the classification of Block Board under Chapter sub-heading 4410.90 or 4408.90. The ld. Commissioner (Appeals) initially classified it under 4408.90, which was challenged in the appeal. The Tribunal referred to a Supreme Court judgment stating that Block Board falls under Chapter Heading 4408.90. Consequently, the Tribunal upheld the classification under Chapter Heading 4408.90, thereby setting aside the earlier classification under 4410.90.

2. The issue of admissibility of Modvat credit for duty paid inputs was raised by the appellant. The appellant argued that Modvat credit should be granted if the demands were confirmed. The Tribunal noted previous decisions stating that Modvat credit is eligible for duty paid on inputs used, subject to verification by the Assistant Commissioner (AC). It was held that Modvat credit would be admissible, provided the appellant could demonstrate the payment of duty on inputs with valid documents.

3. Regarding the benefit of exemption as an SSI Unit under Notifications 175/86 and 1/93, the Tribunal ruled that the respondent would be entitled to the SSI exemption if they could provide evidence of being an SSI unit eligible for the mentioned notifications. The eligibility for exemption was subject to verification by the concerned authorities.

4. The question of a time-barred demand of duty for the period from 1-4-1989 to 19-3-1990 was raised. The Tribunal found that this demand was not time-barred as it was part of the ongoing proceedings initiated under the present show cause notice. The demand was deemed sustainable in law since the issue of classification had been decided in favor of the Revenue, and the necessary documentation had been submitted within the prescribed timelines.

In conclusion, the Tribunal classified the product under Chapter Heading 4408.90, allowed the admissibility of Modvat credit subject to verification, granted the benefit of exemption as an SSI Unit upon evidence submission, and upheld the demand of duty for the specified period as sustainable. The appeal was disposed of accordingly.