2018 (3) TMI 1186 - AT - Central Excise

Liability of duty - Henna Powder - Held that - the Ministry of Finance issue N/N. 11/2017-CE(NT) dated 24.04.2017 under Section 11C of the Central Excise Act, 1944 exempting Henna Powder and Paste falling under Chapter 33 for the period 01.01.2007 to 01.03.2013 - appeal allowed - decided in favor of appellant.

Summary

Issues: Duty liability of the assessee-Appellants for Henna Powder.

Analysis:
The Appellate Tribunal CESTAT, New Delhi, heard appeals filed by the assessee-Appellants against the Order-in-Originals passed by the Commissioner of Central Excise, Jodhpur, regarding the duty liability for Henna Powder. The assessee-Appellants cited Notification No. 11/2017-CE(NT) dated 24.04.2017 issued by the Ministry of Finance, exempting Henna Powder and Paste under Chapter 33 from 01.01.2007 to 01.03.2013. The Tribunal referred to a previous bunch of appeals where it was observed that no Central Excise Duty was required to be paid on the manufacture of Henna Powder and Paste due to the mentioned Notification. The Tribunal noted that the Central Government did not provide any classification for the goods in question under Chapter 33 or Chapter 14. Therefore, the Tribunal did not express any opinion on the classification at that stage. The Tribunal also highlighted that the Government, under Section 11C, issued the Notification to not levy excise duty during the specified period, making the demand confirmation for that period unsustainable. Consequently, the Tribunal set aside the impugned orders and allowed the appeals filed by the assessee-Appellants.

This judgment emphasizes the significance of notifications issued by the Government in exempting certain goods from duty liability. It underscores the Tribunal's role in interpreting such notifications and determining the applicability of duty exemptions to specific cases. The decision showcases the Tribunal's adherence to legal provisions and notifications while resolving disputes related to duty liability. The judgment also highlights the importance of clarity in classification of goods under relevant chapters for accurate determination of duty liability.