1992 (5) TMI 89 - AT - Central Excise

Summary

Issues:
1. Eligibility for exemption under Notification No. 77/85 based on the value of plant and machinery.
2. Inclusion or exclusion of the cost of electrical panels in determining the value of plant and machinery for Small Scale Industry classification.

Analysis:
1. The appeals were filed against an Order-in-Appeal rejecting the challenge to Orders-in-Original that denied exemption under Notification No. 77/85 due to plant and machinery cost exceeding Rs. 20 lakhs. The Collector (Appeals) upheld the exclusion of spares but rejected excluding the cost of electrical panels, leading to the appeals.

2. The appellant argued, citing industry clarifications, that electrical panels should be excluded from the plant and machinery value calculation. They presented legal precedents supporting their stance and emphasized the instructions from the Industries Commissioner of the State Government. The appellant contended that excluding the cost of electrical panels would render them eligible for the exemption.

3. The Departmental Representative opposed, stating that the cited case laws were not applicable to the current matter. He highlighted that the cost of electrical panels was essential for operating specific machines, as evidenced by the list attached to the Order-in-Original. The representative argued that the cost of electrical panels should be included in the plant and machinery value.

4. The Tribunal reviewed the arguments and case laws presented. It noted that the decisions cited by the appellant focused on excluding different charges, not on the issue of electrical panels. Referring to a specific case involving Customs authorities, the Tribunal emphasized that certificates from relevant authorities should not be disregarded. The Tribunal analyzed conflicting information in the appellant's reference material regarding the inclusion/exclusion of electrical panels and concluded that the panels were essential for operating specific machines, justifying their inclusion in the plant and machinery value calculation.

5. Ultimately, the Tribunal dismissed the appeals, upholding the Collector (Appeals)' decision to include the cost of electrical panels in the plant and machinery value calculation. The Tribunal found no merit in the appellant's argument based on the presented reference material and the necessity of electrical panels for machine operation. The decision was pronounced in open court at the end of the hearing.