2009 (5) TMI 665 - AT - Central Excise

Summary

The appellate tribunal CESTAT, Ahmedabad, presided over by Shri B.S.V. Murthy and Ms. Archana Wadhwa, heard an appeal filed by M/s. Krishak Bharti Co-op. Ltd., a company engaged in manufacturing fertilizers under CH.SH. No. 3102.00 of CETA, 1985. The company procured raw materials through various procedures for manufacturing fertilizers and other products. During an audit, it was discovered that the company had used duty-free materials inappropriately, leading to a demand for Central Excise duty. Specifically, the company had sold steam, treated water, and de-mineralized water to the Heavy Water Plant without paying Central Excise duty. The Commissioner (Appeals) upheld the demand for duty on these items, leading to the current appeal.

The tribunal considered the issue of the durability of NGN/ARN used for generating steam supplied to the Heavy Water Plant. The Commissioner had confirmed the demand for duty on NGN/ARN, citing that the goods were not eligible for retrospective exemption under Notification No. 23/2004. The tribunal upheld the Commissioner's decision on NGN/ARN, noting that the goods were not eligible for the exemption prior to the notification. The penalty was set aside, and the tribunal found that there was no intention to suppress facts. The duty liability of Rs. 1206/- on NGN/ARN for the period August 2003 to March 2004 was upheld, while the appeal was allowed for the other two items. The decision was pronounced in court on 29-5-09.