2018 (9) TMI 560 - AT - Central Excise

Issuance of two SCN - SCN pending adjudication - eligibility to exemption Notification 01/93-CE during the period 01.03.1994 to 31.03.1994 - Held that - It is recorded in the order-in-original that for the period 01.04.1993 to 28.02.1994, two show cause notices dated 22.11.1993 and 06.05.1994 were issued proposing denial of exemption Notification 202/88-CE dated 20.05.1988. However, it is not available on record whether show cause notices were decided Without outcome of show cause notices dated 21.11.1993 and 06.05.1994 deciding the eligibility to exemption Notification 01/93-CE during the period 01.03.1994 to 31.03.1994 is clearly pre-mature - the matter needs to be remanded to the Adjudicating Authority to pass a fresh order after considering the status of the case covered under show cause notices dated 21.11.1993 and 06.05.1994 - appeal allowed by way of remand.

Summary

Issues:

1. Eligibility for exemption under Notification No. 01/1993-CE dated 28.02.1993.
2. Denial of exemption under Notification No. 202/88-CE dated 20.05.1988.
3. Show cause notices dated 22.11.1993 and 06.05.1994.
4. Remand of the matter to the Adjudicating Authority.

Analysis:

1. The appellant, engaged in manufacturing iron and steel products, used raw material from ship breaking for which they availed exemption under Notification No. 202/88-CE. The department contended that the appellant was not entitled to the exemption under Notification No. 01/1993-CE due to using ship breaking scrap as raw material. The case involved the interpretation of the eligibility criteria for exemptions during specific periods. The Adjudicating Authority and the first appellate authority upheld the denial of exemption, leading to the present appeal.

2. Despite multiple hearing notices, the appellant did not appear, leading to the appeal being taken up for disposal. The Deputy Commissioner (AR) for the Revenue referred to a previous Tribunal order in a similar case where exemption under Notification 202/88-CE was denied. The Tribunal noted the issuance of show cause notices proposing denial of exemptions for specific periods but found a lack of records on the decisions regarding these notices. The Tribunal emphasized the need for the Adjudicating Authority to reevaluate the case based on the outcomes of the show cause notices dated 22.11.1993 and 06.05.1994 before making a decision on the eligibility for exemptions under Notification 01/93-CE.

3. The Tribunal, after considering the arguments presented and the records, set aside the impugned order and remanded the matter to the Adjudicating Authority for a fresh decision. The decision to remand was based on the incomplete information regarding the outcomes of the show cause notices and the potential impact on the eligibility for exemptions during the relevant periods. The Tribunal's ruling aimed to ensure a comprehensive review of the case before reaching a final decision on the appellant's eligibility for the claimed exemptions.

In conclusion, the judgment by the Appellate Tribunal CESTAT AHMEDABAD highlighted the importance of proper evaluation of show cause notices and their impact on the eligibility for exemptions under specific notifications. The decision to remand the matter to the Adjudicating Authority for a fresh order underscored the need for a thorough assessment based on complete information and legal considerations.