1999 (9) TMI 538 - AT - Central Excise

Summary

Issues:
1. Denial of benefit under Notification 185/86-C.E.
2. Interpretation of Notification 185/86-C.E.
3. Entitlement to exemption under Notification 185/86-C.E.

Analysis:
The appellants appealed against the order-in-appeal denying them the benefit of Notification 185/86-C.E., which exempts goods under T.I. 68 from duty if produced in government-owned factories. The appellants, engaged in manufacturing automobile gears, claimed this exemption for the period from 1-3-1986 to 30-8-1986. The Revenue argued that the exemption applied only to goods produced in government-owned factories. The Notification itself specified that goods under T.I. 68 were exempt if manufactured by government-owned factories, Village Industry, or prison establishments.

The Notification clarified that goods under T.I. 68 were duty-exempt only if produced in specific types of factories, which did not include private factories like the one owned by the appellants. Therefore, the appellants were not entitled to the exemption provided under Notification 185/86-C.E. The Tribunal concluded that since the factory of the appellants did not belong to the government or fall under the specified categories, they were not eligible for the exemption. Consequently, the appeal was dismissed due to the lack of merit in the appellant's claim for exemption under the said Notification.

In summary, the Tribunal upheld the denial of the benefit under Notification 185/86-C.E. to the appellants as their factory did not meet the criteria specified in the notification for duty exemption. The judgment emphasized the importance of adhering to the specific conditions outlined in the notification for availing such exemptions, ultimately leading to the rejection of the appeal filed by the appellants.