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of <h1>Tribunal waives pre-deposit rule for appellants, stresses accurate fly ash content determination</h1> <h3>HYDERABAD INDUSTRIES LTD. Versus COMMISSIONER OF C. EX., RANCHI</h3> HYDERABAD INDUSTRIES LTD. Versus COMMISSIONER OF C. EX., RANCHI - 2009 (235) E.L.T. 380 (Tri. - Kolkata) Issues:1. Interpretation of exemption notifications for asbestos cement sheets.2. Calculation of percentage weight of fly ash in the final product.3. Maintenance of proper records and compliance with prescribed procedures.4. Burden of proof for claiming conditional exemption from Excise duty.Analysis:1. The main issue in this case revolves around the interpretation of exemption notifications for asbestos cement sheets. The appellant claimed entitlement to exemption under Notifications requiring the use of fly ash in manufacturing the sheets. The argument centered on whether the appellants met the required percentage of fly ash in their product, with the appellant contending they used 27% of fly ash based on the standard weight of the sheets.2. The calculation of the percentage weight of fly ash in the final product was crucial. The appellant relied on industry practices and the CBEC Manual, which accepted standard weight for assessment purposes. The Commissioner's reliance on sample weighments of wet sheets during the maturing process was challenged, emphasizing the need to consider the weight of fully manufactured sheets ready for clearance.3. The issue of maintenance of proper records and compliance with prescribed procedures was raised. The appellant argued that they maintained the necessary registers and records as per Board's Circular and the relevant Notification, and no discrepancies were found in their standard weight recording over the years. Similar cases in favor of other manufacturers supported the appellant's claim regarding standard weight maintenance.4. Regarding the burden of proof for claiming conditional exemption from Excise duty, the Department contended that the appellants failed to prove compliance with the conditions for exemption. However, the Tribunal found merit in the appellant's arguments, noting precedents where the weight of impugned goods in wet condition during curing process should not be considered for determining fly ash content.In conclusion, the Tribunal ruled in favor of the appellants, waiving the pre-deposit requirement during the appeal's pendency. The decision highlighted the importance of considering the weight of finished goods at the time of clearance from the factory for determining fly ash content, and emphasized the appellants' compliance with record-keeping requirements and industry standards.
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