9911796707
TMI Blog2015 (1) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... lty was confirmed on R.C. Mattresses for the period April 2008 to February 2011 relating to Show Cause Notice dated 26.03.2012 and demand of Rs. 29,46,112/- along with interest and penalty was confirmed in respect of Show Cause Notice dated 22.11.2012 on R.C. Mattresses cleared during the period March 2011 to May 2012. The adjudicating authority confirmed the demand on the ground that R.C. Mattresses (Rubberised Coir Mattresses) cannot be treated as coir products and therefore are not eligible for the benefit of Notification No.6/2006-CE dated 01.03.2006 up to 28.02.2011 and for the benefit of Notification No.1/2011 dated 01.03.2011 for the remaining period. The adjudicating authority came to the finding that R.C. Mattresses manufactured by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h 2011-12 stated that a nominal Central Excise duty of 1% is being imposed on the 130 items that are entering the tax net. No Cenvat credit would be available for the manufacture of these items. The impugned goods namely R.C. Mattresses was included in the list of these 130 items. (iii) As per the Coir Board, Kochi letter dated 05.06.2012 it has been clarified that any product with coir content of more than 25% of the weight are coir products and R.C. Mattresses manufactured by the appellants have coir content of more than 70% a fact which is not challenged. (iv) That with effect from 01.03.2011 the rate of duty on the impugned goods is 1% and from 17.03 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnai 2005 (180) ELT 235 (Tr.-Bang.). Thus it is obvious that the impugned demand for the period up to February 2011 does not survive. For the subsequent period, it is seen that for the period 01.03.2011 to 16.03.2012 the effective rate for coir products was 1% and from 17.03.2012 it was 2% ad val subject to the condition that there was no Cenvat Credit taken on the inputs or input services. The appellants have stated that they have already paid the duty. 4. In the foregoing circumstances there is no justification for imposition of any penalty. 7. In view of foregoing, the appeals are allowed and the impugned orders set aside to the extent that. (i) The impugned demand for the period upto 28.02.2011 is set aside. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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