Customs, Excise and Gold Tribunal - Mumbai
Cce vs Pant Engg. Works on 19 March, 1999
Equivalent citations: 1999(83)ECR478(TRI.-MUMBAI)
ORDER G.R. Sharma, Member (T)
1. In the impugned order, the Collector (Appeals) held that "The appellants have exceeded the clearance value of Rs. 40 lac upto 28.2.1986 for their TI 68. In view of the Notfn. No. 213/86, during the disputed period i.e. 25.3.1986 to 31.3.1986 as the duty for TI 68 was 12% Adv. prior to 1.3.1986 i.e. before the commencement of Central Excise Tariff Act, 1985. Notfn. No. 213/86-CE is not covered under Central Excise Duties of Excise (Retrospective Exemption) Act, 1986. In view of the above, the impugned order dated 5.4.1990 passed by the Asst. Collector is not correct and the same is set aside." Being aggrieved by this order, the Collector has filed the captioned appeal.
2. The facts briefly stated are that the respondents are manufacturers of part of machinery. During the period from 1.3.1986 to 31.3.1986, the appellants cleared parts of air compressors, parts of electric motors and generators and other parts of the goods at concessional rate of duty under Notfn. No. 175/86-CE dt. 1.3.1986. The Supdt. of Central Excise alleged that since Notfn. No. 175/86 was suspended from 25.3.1986 to 31.3.1986 by issue of Notfn. No. 202/86, the alternative notification was Notfn. No. 213/86 dt. 25.3.1986 under which the rate of duty is to be considered as per new Central Excise Tariff Act effective from 1.3.1986. He, therefore issued a show cause notice asking the assessees to explain as to why the duty amounting to Rs. 46,660.45 for the period 1.3.1986 to 31.3.1986 should not be demanded and recovered from them. In reply to the show cause notice, the respondents submitted that the clearances made during the period 25.3.1986 to 31.3.1986 are not covered by Notfn. No. 175/86; that Notfn. No. 175/86 was not applicable for the period of seven days commencing from 25.3.1986 and ending on 31.3.1986 and as such exemption under Notfn. No. 175/86 would not be applicable during the aforesaid period; that during the period, the Notfn. No. 77/85 for TI 68 was applicable as Notfn. No. 213/86 was issued for availing exemption on the goods falling under TI 68 and not for charging of Central Excise duty as alleged. They had contended that concession availed by them during the month of March was in order. The Asst. Collector after considering their submissions confirmed the demand for differential duty amounting to Rs. 17,189.35 for the period from 25.3.1986 to 31.3.1986.
3. Shri Nunthuk, ld. JDR appears for the Revenue. The respondents have made a request to consider their case on merits.
4. Ld. JDR submits that the Collector (Appeals) was in error in holding that during the period from 25.3.1986 to 31.3.1986 the rate of duty for the goods falling under TI 68 was 12% Adv. in view of the Notfn. No. 213/86; that in fact this notification did not prescribe any effective rate of duty but only restored slab exemption of clearances of goods falling under erstwhile TI 68 as it existed prior to 1.3.1986; that during the period from 25.3.1986 to 31.3.1986, the Central Excise Tariff Act, 1985 was in force and, therefore, the duty had to be levied at the rate prescribed by this Act and not at the rates prescribed under deleted first Schedule to the Central Excises Act, 1944. Accordingly the duty is to be paid at 15% Adv. and in respect of certain items it was 20% Adv. in respect of the goods which were earlier classifiable under TI 68. Ld. JDR, therefore prays that the appeal may be allowed.
5. Heard the submissions of ld. JDR. Perused the evidence on record and the contentions of the respondents which they made before the lower authorities. We find that in terms of Notfn. No. 213/86, the duty applicable to the product in question during the period from 25.3.1986 to 31.3.1986 is 12% Adv. and not the full duty as confirmed by the Asst. Collector. We note that the goods manufactured by the respondents were classifiable under erstwhile TI 68 prior to 1.3.1986. The appellants were availing the benefit of Notfn. No. 77/85 dt. 17.3.1985 prior to 1.3.1986. From 1.3.1986 the Notfn. No. 175/86 dt. 1.3.1986 came into force in respect of small scale industrial units. However operation of Notfn. No. 175/86 was suspended from 25.3.1986 under Notfn. No. 202/86 dt. 25.3.1986. Simultaneously the Notfn. No. 213/86 dt. 25.3.1986 was issued for the period from 25.3.1986 to 31.3.1986. The Notfn. No. 213/86 dt. 25.3.1986 refers to exemption in full or in part as the case may be from the whole of duty of excise leviable under erstwhile TI 68. As the respondents exceeded clearance of Rs. 40 lac upto 28.2.1986 for their TI 68 and they had to pay the duty at the rate of 12% Adv. under Notfn. No. 213/86.
6. In view of the above, we do not find any legal infirmity in the order passed by the Collector (Appeals). In the circumstances, the impugned order is upheld and the appeal is rejected. Pronounced in the court.