1985 (3) TMI 265 - AT - Central Excise

Tribunal directs assessment of cotton oil percentage in vegetable product, grants concession to appellant

MADHUSUDAN VEGETABLE PRODUCTS Versus COLLECTOR OE CENTRAL EXCISE

The Tribunal overturned the decisions of the lower courts and directed the Central Excise authorities to assess the percentage of cotton oil in the ... - Issues: Interpretation of Notification No. 209/76-C.E. for concession availability, calculation period for rebate eligibility, and reasoning behind rejection of claim.Analysis:1. The case involved a dispute regarding the availability of concession under Notification No. 209/76-C.E. for a vegetable product cleared between 1-1-1978 and 27-1-1978 after the rescission of the notification on 28-1-1978.2. The Appellate Tribunal considered the arguments presented by both parties. The appellant contended that the vegetable product was entitled to the concession as the claim period fell within the notification's operational timeline. The department argued that the concession was withdrawn when the claim was made in March 1978, and the clearance period did not align with the complete 6-month calculation period specified in the notification.3. The Tribunal disagreed with the lower courts' decisions and set aside the orders of the Collector (Appeals) and the Assistant Collector. It emphasized that the notification provided exemption to vegetable products using indigenous cotton seed oil, cleared during specific 6-month periods, and subsequent cycles thereafter.4. The Tribunal scrutinized the Assistant Collector's reasoning for rejecting the claim, highlighting discrepancies in the interpretation of the notification's provisions. It noted the lack of factual evidence regarding the percentage of indigenous cotton oil used in the vegetable product's manufacture.5. The Collector (Appeals) was criticized for his convoluted reasoning related to the normal course of calculation and the rescission of the notification. The Tribunal clarified that the concession should be granted if the vegetable product met the criteria during any 6-month cycle, including the period in question.6. Ultimately, the Tribunal directed the Central Excise assessing authorities to determine the percentage of cotton oil used in the vegetable product. If the product met the specified criteria, the concession under Notification No. 209/76-C.E. should be granted to the appellant, M/s. Madhusudan Vegetable Products Co. Limited.