2017 (3) TMI 239 - AT - Central Excise

Captive consumption - intermediate producut - Benefit of N/N. 67/95 dated 16.03.1995 - While trimming untrimmed sheets and circles scrap was generated, whether untrimmed circles and sheets of brass were eligible to enjoy benefits of Notification? - Held that - merely because in the process of trimming, certain wastes have arisen, untrimmed sheets captively consumed, the benefit of exemption under N/N. 67/95 cannot be denied. Prima facie, the applicants shall be eligible for the benefit of N/N. 67/95 - appeal dismissed - decided against Revenue.

Summary

Issues:
1. Appeal against Order-in-Appeal No. 242-243/CE/MRT-II/2009 dated 31/08/2009.
2. Eligibility of untrimmed brass sheets and circles for benefits under Notification No. 67/95.
3. Interpretation of Notification No. 67/95 regarding duty exemption for brass.
4. Comparison between brass and copper for duty exemption.
5. Application of previous Tribunal and High Court decisions in similar cases.
6. Applicability of Supreme Court ruling on the classification of brass and copper.

Analysis:
The judgment involves two appeals filed by the Revenue challenging Order-in-Appeal No. 242-243/CE/MRT-II/2009 dated 31/08/2009. The case revolves around the eligibility of untrimmed brass sheets and circles for benefits under Notification No. 67/95. The Revenue issued show cause notices demanding Central Excise Duty on untrimmed brass sheets and circles, claiming they were not eligible for the mentioned benefits. The Order-in-Original confirmed the duty demand and penalties, which were later set aside by the Commissioner (Appeals) in the impugned Order-in-Appeal dated 31.08.2009, leading to the Revenue's appeals before the Tribunal.

One of the major grounds of appeal was the argument that brass and copper are the same goods, thus denying benefits to copper would also apply to brass. Another ground relied on a previous Tribunal decision and an Allahabad High Court ruling regarding a prima facie case for duty demand under Notification No. 67/95. The Tribunal heard arguments from both the Revenue and the respondents' counsels. The respondents' counsel referenced the Tribunal's and the High Court's previous decisions, emphasizing the eligibility of untrimmed sheets for exemption under Notification No. 67/95.

After considering the contentions from both sides, the Tribunal agreed with the respondents' counsel, dismissing the Revenue's appeals. The Tribunal upheld the eligibility of the respondents for benefits under Notification No. 67/95. The judgment also addressed the applicability of a Supreme Court ruling distinguishing between brass and copper as different commodities for duty exemption purposes. Consequently, both the appeals and cross objections were dismissed, granting the respondents any consequential relief as per the law.

This detailed analysis of the judgment highlights the key issues involved, the arguments presented by both parties, and the Tribunal's decision based on the interpretation of relevant legal provisions and precedents set by higher courts.