Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (7) TMI 344 - MADRAS HIGH COURT

2015 (7) TMI 344 - MADRAS HIGH COURT - 2015 (322) E.L.T. 434 (Mad.) - Denial of exemption claim - Whether the Tribunal is right in law in holding that the first respondent is entitled to the exemption under the notification No.62/95 CE dated 16-03-1995 and No.89/95 CE dated 18-05-1995 when such notifications stipulate certain conditions which were admittedly not complied with by the first respondent - Held that:- The assessee availed the benefit of this Notification in respect of clearance of wa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

was sustained. The Tribunal came to hold that the show cause notice as well as the adjudication order proceeds on the misconception of the term 'exemption'. In otherwords , the Tribunal relying upon the Explanation to Notification No.89 of 1995-CE dated 18.05.1995 came to the conclusion that since the manufactured goods are exempted goods, the benefit of Notification No.89 of 1995 dated 18.5.1995 would be applicable. The Tribunal rightly held that proviso to this Notification would not apply to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

asuki,JJ. For the Appellant : Mr S Xavier Felix For the Respondent : Mr V G Suresh Kumar - R1 JUDGMENT (Judgment of the Court was delivered by R. Sudhakar,J.) This Civil Miscellaneous Appeal filed as against the order of the Tribunal was admitted by this Court on the following substantial questions of law: "1. Whether the Tribunal is right in law in holding that the first respondent is entitled to the exemption under the notification No.62/95 CE dated 16-03-1995 and No.89/95 CE dated 18-05- .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s engaged in the business of manufacturing passenger coaches both self-propelled and non-propelled, steel freight containers and parts of passenger coaches for railways under Chapter 86 of CET 1985. They are availing exemption under Notification No.62/95 CE dated 16.3.1995. Alleging that ICF had cleared ferrous and non-ferrous scrap without payment of Central Excise duty, show cause notice was issued proposing to demand duty along with interest and penalty. The first respondent/assessee replied .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd Explanation to the Notification allowed the claim of the assessee holding as follows: "3. After giving careful consideration to the submissions, we have found valid challenge in this appeal. A decision would rest on the interpretation of the proviso to Notification No.89/95-CE ibid. The case of the Revenue is that, as the assessee had cleared excisable goods (coaches, coach components and containers) on payment of duty during the period of dispute, their claim for the benefit of the Noti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.16( i ) of the Table) manufactured by a factory belonging to the Central Government remained "exempted goods" within the meaning of this expression given under the Explanation to the Notification. We have found force in this argument. As per the Explanation, "exempted goods" means excisable goods which are chargeable to 'nil' rate of duty or exempted from the whole of the duty of excise leviable thereon by any other Notification issued under sub-rule (1) of Rule 8 of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

notice and in the impugned order, "exemption" was misconceived. Apparently, the department (in the show-cause notice) and the Commissioner (in the impugned order) overlooked the Explanation to Notification No.89/95-CE. The proviso to Notification No.89/95-CE was not attracted in this case and the assessee was entitled to the benefit of the Notification and consequently the demand of duty is not sustainable. We need not look into the limitation issue. 4. In the result, the impugned orde .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f manufacture of exempted goods and falling within the schedule to the Central Excise Tariff Act, 1985, are exempted from the whole of excise duty leviable thereon, which is specified in the said schedule, provided that nothing contained in this Notification shall apply to waste, paring and scrap cleared from a factory in which any other excisable goods other than exempted goods are cleared." 6. The assessee availed the benefit of this Notification in respect of clearance of waste scraps ar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version