2012 (2) TMI 509 - HC - Central Excise

Summary

Issues:
The issues involved in the judgment are eligibility for proportionate refund under a specific notification for products not eligible for the notification and the treatment of two manufacturing units as independent entities for excise purposes.

Eligibility for Proportionate Refund:
The respondent had two manufacturing units, one for producing bare pipes and another for coated pipes. The first unit was set up before the cut-off date for exemption under notification No.39/2001-CE, while the second unit for coated pipes was set up after the cut-off date. The Tribunal considered both units as independent entities due to separate excise registration numbers. The Tribunal granted the benefit of exemption to the first unit manufacturing bare pipes but not to the second unit producing coated pipes. The Tribunal allowed refund of duty on bare pipes cleared for coating from the first unit to the second unit. The High Court upheld the Tribunal's decision, stating that the unit manufacturing bare pipes before the cut-off date was eligible for exemption, even though the unit producing coated pipes after the cut-off date was not eligible. The Court found no error in the Tribunal's view and dismissed the Tax Appeal.

Treatment of Manufacturing Units:
The Tribunal accepted the demarcation of the two units with separate excise registrations as two distinct entities. The Tribunal allowed the refund of duty on bare pipes cleared for coating from the first unit to the second unit. The High Court affirmed the Tribunal's decision, emphasizing that the first unit manufacturing bare pipes before the cut-off date was entitled to the benefit of the exemption notification. The Court dismissed the Tax Appeal, stating that no question of law arose. Additionally, the Civil Application was also dismissed in view of the main Tax Appeal judgment.