2011 (10) TMI 68

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..... the facts of this case. Therefore, the goods manufactured by the appellant are totally exempt from payment of duty. Since the goods are totally exempt from payment, question of taking registration, accounting the goods manufactured does not arise. - Decided in favor of assessee.
MR.M.V. RAVINDRAN, MR. B.S.V. MURTHY, JJ. Represented by: Shri P.M. Dave, for Assessee. Shri R.Srova, JDR for the Revenue. Per: MR. B.S.V. Murthy: The facts of the case, in brief, are that the factory premises of the appellants were searched by the Central Excise officers on 6.2.99 and physical stock verification was carried out in the presence of Shri H.B. Lalani, Partner of the appellant firm. During the course of physical stock verification, stock of fin .....

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..... se of brass sheets/circles manufactured by the appellant to the exemption under Notification No.5/98, dt.2.6.98 at Sr.No.207. He submitted that the issue is no longer res-integra and Hon'ble Supreme Court in the case of CCE Jaipur Vs Mewar Bartan Nirman Udyog 2008 (231) ELT 27 (SC), has held that the exemption notification has to be interpreted in terms of its language and for interpreting the same, one cannot go to the rules of interpretation applicable to classification under the tariff. He submits that the Commissioner (Appeals), in her order, has taken the view that copper is predominant metal in brass sheets/circles manufactured by the appellant and therefore the term 'copper sheets/circles' used in the notification has to be held as c .....

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..... , one cannot go by rules of interpretation applicable to cases of classification under the Tariff. Tariff items in certain cases are required to be interpreted in cases of classification disputes in terms of HSN, which is the basis of the Tariff. In this case, we are not concerned with interpretation of Tariff. In fact, as stated above, the product in question falls under Chapter Heading 74.09. It is the dichotomy which is introduced by the exemption Notification which needs to be interpreted. Items made from copper attract duty at the rate of Rs. 3500 PMT whereas circles made from brass attract nil rate of duty. As stated above, in this case, the Department has not disputed the fact that the circles were manufactured by the assessee from b .....

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