2009 (9) TMI 820 - AT - Central Excise

Appellate tribunal grants full waiver on pre-deposit, emphasizes promoting exports and supporting E.O.Us

CCL PRODUCTS (INDIA) LTD. Versus COMMISSIONER OF C. EX., GUNTUR

CCL PRODUCTS (INDIA) LTD. Versus COMMISSIONER OF C. EX., GUNTUR - 2010 (252) E.L.T. 237 (Tri. - Bang.) Issues:Demand of duty, interest, and penalty under Notification No. 22/2003-C.E. for exemption availed by E.O.U. for specific goods.Analysis:The judgment pertains to an E.O.U. facing a demand of Rs. 9,99,863/- for exemption availed under Notification No. 22/2003-C.E. The original authority also imposed a penalty of Rs. 1,00,000/- under Rule 25 of the Central Excise Rules, 2002. The E.O.U. had procured 'ceiling panels', 'wall panels', 'window panels', and 'thermocole' for their refrigeration facilities. The lower authorities denied the exemption citing that these items were not specified in the notification.The appellate tribunal noted that the appellants are involved in the manufacture and export of coffee, requiring refrigeration facilities for production. The tribunal acknowledged that the disputed goods are capital goods essential for manufacturing export products. The notification in question provides benefits to an E.O.U. for goods necessary in the production of export goods. The tribunal found that the appellants presented a strong prima facie case against the duty, interest, and penalty demanded.As a result, the tribunal ordered a full waiver of the pre-deposit of dues and stayed the recovery pending the appeal's disposal. This decision was made after considering the essentiality of the disputed goods for the manufacturing process and the clear intent of the notification to support E.O.Us in their export-oriented activities. The judgment emphasizes the importance of interpreting exemption notifications in favor of promoting export activities and facilitating the functioning of E.O.Us in line with the government's policy objectives.