2004 (5) TMI 523 - AT - Central Excise

Tribunal orders duty re-determination, permits adjustments as per Larger Bench decision.

The Tribunal allowed the appeals by remand, setting aside the lower authorities' orders and directing a re-determination of duty liabilities in accordance ... SSI Exemption Issues:1. Computation of the value of first clearances for granting exemption under Notification No. 1/93-C.E.Analysis:The main issue in the appeals was whether the value of first clearances for granting exemption under Notification No. 1/93-C.E. should be computed from the date the goods became specified goods under the said notification or from a later date when the appellants opted to avail the exemption. The appellant argued that a majority order in a related case supported computing the value from the date the appellants opted for the exemption during the year 1994-95. On the other hand, the respondent strongly opposed this contention, citing a Larger Bench decision in a different case which determined that the value of clearances should be computed from the date the goods became specified goods under the notification. The respondent also referred to decisions of the Hon'ble Madhya Pradesh High Court and other Larger Bench decisions to support their argument.The appellant contended that there was essentially no difference between the majority order in a related case and the decision of the Larger Bench in the case cited by the respondent, especially when considering a specific paragraph in the Larger Bench decision. The appellant argued that following the Larger Bench decision, including the mentioned paragraph, would have the same effect as following the majority order in the related case. Other advocates representing additional appellants adopted the arguments put forth by the appellant.After hearing both sides and examining the case records, the Tribunal found merit in adopting the decision of the Larger Bench cited by the respondent. The advocates for the appellants did not object to following this decision as long as a specific observation in a paragraph of the Larger Bench decision was considered. The Tribunal, therefore, set aside the impugned orders passed by the lower authorities and remanded the matter for re-determining duty liabilities in line with the decision of the Larger Bench. The Tribunal directed the Original Authorities to allow adjustments of duty as provided in the specific paragraph mentioned in the decision.Ultimately, the appeals were allowed by remand, with the Tribunal pronouncing the decision in court on a specific date.