Nil rate of duty for brass sheets and circles under Chapter 7409 upheld under a pari materia exemption notification

Brass sheets and circles classifiable under Chapter heading 7409 were held eligible for nil rate of duty under Notification No. 5/2006-C.E., because the notification specifically imposed duty of Rs. 3,500 per MT only on copper goods under that entry while goods other than copper, including brass, remained exempt. The Tribunal treated the later notification as pari materia with the earlier notification and applied the same classification reasoning previously affirmed by the Supreme Court. The assessee's relief was upheld and the Revenue's challenge failed.

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Issues: Whether trimmed or untrimmed brass sheets and circles falling under Chapter heading 7409 were liable to Central Excise duty at Rs. 3,500 per MT under Notification No. 5/2006-C.E. dated 01.03.2006 or were chargeable to nil rate of duty.

Analysis: The Tribunal noted that Notification No. 5/2006 contained a specific entry for goods under Chapter heading 7409, under which copper attracted duty at Rs. 3,500 per MT while goods other than copper, including brass, attracted nil rate of duty. The Tribunal further held that the earlier notification and the later notification were pari materia insofar as brass sheets and circles were concerned, and therefore the reasoning of the earlier Supreme Court ruling remained applicable.

Conclusion: Brass sheets and circles were not liable to duty at Rs. 3,500 per MT and continued to enjoy nil rate of duty under the applicable notification. The Revenue's appeal failed.

Final Conclusion: The impugned order granting relief to the assessee was upheld and the Revenue challenge was rejected.

Ratio Decidendi: Where the later exemption notification is pari materia with the earlier one, the same classification treatment applies to brass goods, and goods other than copper under the relevant heading are entitled to nil rate of duty.

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