2002 (6) TMI 220 - AT - Central Excise

Summary

Issues:
1. Interpretation of exemption Notification No. 12/95 regarding clearance limit for cement.
2. Inclusion or exclusion of cement bearing another brand name in the calculation of eligible limit for exemption.
3. Application of the provisions of the Notification to determine duty liability.

Analysis:

1. The appeal involved the interpretation of Notification No. 12/95, which exempted certain goods from Central Excise duty based on specified conditions. The issue was whether the total clearance of cement, including that bearing a different brand name, should be considered for determining eligibility for the exemption.

2. The Tribunal examined the provisions of the Notification, specifically focusing on the conditions related to the installed capacity of the factory and the total clearance of cement in a financial year. It was noted that the Notification excluded cement bearing a brand name of another person from the benefit of the exemption, irrespective of whether full duty was paid on such cement.

3. The Tribunal analyzed the dispute regarding the clearance of cement with a brand name different from the manufacturer's own brand. It was observed that the Notification clearly stated that such cement would not be eligible for the exemption. The Tribunal emphasized that the concessional rate of duty up to 99,000 metric tonnes did not apply to cement bearing another brand name, as per the Notification's provisions.

4. Referring to a previous case, the Tribunal clarified that the benefit of the exemption was intended for the goods manufactured, not the manufacturer. Therefore, the Tribunal differentiated between cement cleared under the manufacturer's brand name and that bearing another brand name. In this case, the Tribunal allowed the benefit of the exemption for the cement cleared under the appellant's brand name but excluded the cement bearing the brand name of another company.

5. Based on the analysis of the provisions and the facts of the case, the Tribunal concluded that the appellant's total clearances fell within the eligible limit for the exemption under Notification No. 12/95. Consequently, the Tribunal decided to allow the appeal and held that there was no contravention of the clearance limits specified in the Notification.

6. In light of the findings, the Tribunal overturned the orders of the lower authorities and granted the appeal with consequential benefits as per the law. The decision emphasized the strict interpretation of the Notification's provisions in determining the duty liability for the appellant in this case.