2005 (1) TMI 261 - AT - Central Excise

Summary

Issues:
1. Denial of benefit of Notification No. 19/97-C.E.
2. Re-quantification of duty by Assistant Commissioner.
3. Appeal based on Tribunal's decision in Ashok Iron & Steel Fabricators case.
4. Disallowance of credit of duty on inputs.
5. Correct quantification of demand by Deputy Commissioner.
6. Applicability of Albert David Ltd. judgment.
7. Period involved in the case.

Analysis:

1. The case involved the denial of the benefit of Notification No. 19/97-C.E. by the Commissioner of Central Excise, leading to a duty demand and penalty against the respondents. The Tribunal upheld the denial but directed re-quantification of the demand by the Assistant Commissioner, considering the Modvat credit on duty paid on inputs. The Assistant Commissioner allowed only a partial credit, which was challenged by the assessees in a subsequent appeal.

2. The Tribunal, in the second appeal, accepted the assessees' plea based on the decision in the Ashok Iron & Steel Fabricators case. It held that the authorities were not justified in disallowing the credit of duty on inputs lying in stock at the time of subsequent exemption of the final product. The matter was remanded to the Assistant Commissioner for re-quantifying the demand, ensuring the correct calculation of credit available to the assessees.

3. The Deputy Commissioner, however, confirmed a demand after relying on the Tribunal's decision in the Albert David Ltd. case, which was further upheld by the Commissioner (Appeals). The Tribunal, on review, found that the Albert David judgment was not applicable to the present case as it involved a period before the introduction of certain rules considered in the Albert David case. Consequently, the impugned order was set aside, and the case was remanded for correct quantification by the adjudicating authority.

4. The appeal was allowed by way of remand, emphasizing the incorrect application of the Albert David judgment to the case's specific period. The Tribunal clarified the distinction in the timelines involved, leading to the decision to remand the case for a proper quantification of the demand in light of the specific circumstances and legal framework applicable during the relevant period.

Operative part of the Order pronounced in the open Court.