2009 (7) TMI 1114 - AT - Central Excise

Appellant entitled to lesser duty benefit despite previous benefit claimed; Tribunal cites precedent.

KARANJA INDUSTRIES Versus COMMISSIONER OF C. EX., BELGAUM

The Tribunal held that the appellant is eligible to avail the benefit of lesser duty under Sl. No. 86A despite having availed the benefit under Sl. No. ... - Issues involved: Interpretation of Notification No. 6/2002-C.E., dated 1-3-2002 regarding the eligibility of the appellant to avail the benefit of lesser rate of duty under Sl. No. 86A after already availing the benefit under Sl. No. 86.Summary:Issue 1: Eligibility for benefit under Sl. No. 86A after availing benefit under Sl. No. 86 The appellant availed concessional rate of duty under Sl. No. 86 for the clearance of 3,500 MTs of kraft paper and later started paying duty at the rate of 12% under Sl. No. 86A. The department contended that the appellant cannot avail the benefit of Sl. No. 86A after already availing the benefit under Sl. No. 86. The Adjudicating Authority confirmed the demands, but set aside the penalties. The appellant argued that conditions of Sl. Nos. 86 and 86A did not restrict the appellant from availing the benefit of lesser duty under Sl. No. 86A. The Tribunal referred to the conditions of the notification and a previous High Court decision, concluding that the appellant's claim for the benefit of lesser duty under Sl. No. 86A cannot be denied as there is no restriction on such availment. The Tribunal allowed the appeals, setting aside the orders-in-appeal.Decision: The Tribunal held that the appellant is eligible to avail the benefit of lesser duty under Sl. No. 86A despite having availed the benefit under Sl. No. 86, as the conditions of the notification do not impose such a restriction. The Tribunal relied on a previous High Court decision to support its conclusion, setting aside the orders-in-appeal and allowing the appeals with consequential relief.