2024 (3) TMI 978 - AT - Central Excise

Classification of goods - Reusable Insulin Delivery Device bearing the brand name All Star - classifiable under Central Excise Tariff Heading 9018 3100 availing the benefit of concessional rate of duty as per Notification No. 12/2012-CE dated 17.03.2012 under Serial No. 310 or under Serial No. 309? - Department is of the view that appellant have wrongly availed Cenvat credit on the inputs and input service used in the manufacture of their finished products i.e. Reusable Insulin Delivery Device - HELD THAT - It can be seen that Reusable Insulin Delivery Device is nothing but a Syringe without needle and is rightly classifiable under Chapter sub-heading 9018 3100. So far as the availability of Notification No. 12/2012-CE is concerned, the entry at Serial No. 309 covers only parts and accessories of goods of heading 9018 and 9019 whereas we find more specific serial number for concessional rate of duty under the exemption Notification No. 12/2012-CE for the product will be under Serial No. 310 which reads as All goods (other than parts and accessories thereof) . The impugned manufactured product is Syringes without needle and the same cannot be classified as parts and accessories of the goods of heading 9018. Therefore, the impugned product will be entitled for concessional rate of duty under Serial No. 310 of exemption Notification No. 12/2012-CE dated 17.03.2012. Accordingly, the appellant have rightly been paying excise duty at the concessional rate of 6% and they are entitled for Cenvat credit on the inputs and input services availed by them. There are no merit in the impugned orders-in-appeal and the same are set-aside - appeal allowed.

Summary

Issues:
The issues involved in the judgment are the classification of Reusable Insulin Delivery Device, applicability of concessional rate of duty, and the entitlement to Cenvat credit on inputs and input services.

Classification of Reusable Insulin Delivery Device:
The appellant, a manufacturer of Reusable Insulin Delivery Device, classified their product under Central Excise Tariff Heading 9018 3100, availing the benefit of a concessional rate of duty under Notification No. 12/2012-CE. The Department contended that the product falls under Serial No. 309 of the notification, attracting a nil rate of duty for 'parts and accessories' of goods under specific headings. The appellant argued that their product, 'Syringes without needles', falls under Chapter sub-heading 9018 3100 and is entitled to the concessional rate of duty at 6% under Serial No. 310 of the notification.

Applicability of Concessional Rate of Duty:
The appellant claimed that their Reusable Insulin Delivery Device, classified as 'Syringes without needles', is a complete product used for administering insulin, not a part or accessory. They contended that the product qualifies for the concessional rate of duty under Serial No. 310 of the notification. The Tribunal observed that the product indeed falls under Chapter sub-heading 9018 3100 and is entitled to the concessional rate of duty, rejecting the Department's contention.

Entitlement to Cenvat Credit:
The key question was whether the appellant could avail Cenvat credit on inputs and input services used in manufacturing the Reusable Insulin Delivery Device, considering the dispute over the classification and duty rate. The Tribunal determined that the appellant correctly paid excise duty at the concessional rate of 6% and was entitled to Cenvat credit, overturning the Department's demands for reversal of credits.

The Tribunal concluded that the Reusable Insulin Delivery Device, classified as 'Syringes without needles', falls under Chapter sub-heading 9018 3100 and is entitled to the concessional rate of duty under Serial No. 310 of Notification No. 12/2012-CE. Therefore, the impugned orders-in-appeal were set aside, and the appeals were allowed.