2017 (1) TMI 836 - AT - Central Excise

Tribunal overturns duty on copper sheets, citing lack of marketability evidence.

The Tribunal allowed the appeal filed by M/s. Lohia Brass Ltd., holding that Untrimmed Sheets of Copper were not liable to duty due to insufficient ... Dutiability of Untrimmed Sheets of Copper - Untrimmed Sheets and Circles of Brass & Copper were being manufactured by the appellant which were captively consumed in the manufacture of Trim Sheets and Circles and that there was no clearance of Untrimmed Sheets and Circles - whether it was justified in holding that the said goods were captively consumed and are not sold, and are thus not marketable, thereby not liable to tax? - Held that: - this Tribunal has categorically in Para 12 of said final order dated 14/07/1999 held that Untrimmed Sheets of Copper are not liable to duty because the marketability of the said has not been proved. In respect of such a clear finding on the issue Id. Commissioner (Appeals) deviated from the judicial discipline and has held in the impugned Order-in-Appeal No. 136-137-CE/MRT-II dated 29/06/2007, that Untrimmed Sheets of Copper are excisable goods. We, therefore, find that the impugned Order-in-Appeal is bad in law - Untrimmed Sheets and Circles not liable to tax - appeal allowed - decided in favor of appellant-assessee. Issues:1. Appeal against Order-in-Appeal No. 136-137-CE/MRT-II dated 29/06/2007 passed by Commissioner of Central Excise & Customs (Appeals), Meerut.2. Dispute over dutiability of Untrimmed Sheets and Circles manufactured by the appellant.3. Interpretation of Final Orders No. 640-641/99-C dated 14/07/1999 and Final Order No. 64-65/2000-B dated 10/01/2000 by the Tribunal and the Commissioner (Appeals).4. Whether Untrimmed Copper Sheets are excisable goods liable to duty.Analysis:The appellant, M/s. Lohia Brass Ltd., filed an appeal against Order-in-Appeal No. 136-137-CE/MRT-II dated 29/06/2007 issued by the Commissioner of Central Excise & Customs (Appeals), Meerut. The dispute centered around the dutiability of Untrimmed Sheets and Circles manufactured by the appellant, which were allegedly captively consumed in the production of Trim Sheets and Circles exempt from Central Excise duty. Multiple Show Cause Notices were issued to the appellant covering different periods, questioning the dutiability of the Untrimmed Sheets and Circles. The Original Authority, relying on previous Tribunal orders, dropped the proceedings initiated by the Show Cause Notices. However, the Commissioner (Appeals) held that Untrimmed Copper Sheets are excisable goods and thus liable to duty, contrary to the Tribunal's previous decisions.The appellant argued that the Commissioner (Appeals) erred in issuing the authorization for the appeal, as the Tribunal had previously ruled in their favor in Final Orders No. 640-641/99-C dated 14/07/1999. The Tribunal, upon review, found that the Commissioner (Appeals) had deviated from the judicial discipline by holding Untrimmed Sheets of Copper as excisable goods, despite the Tribunal's clear finding that the marketability of such sheets had not been proven. Consequently, the Tribunal deemed the Order-in-Appeal as legally flawed and set it aside, restoring the Original Order dated 19/10/2005.In conclusion, the Tribunal allowed the appeal filed by the appellant, emphasizing that the Untrimmed Sheets of Copper were not liable to duty based on the lack of evidence of marketability. The appellant was granted entitlement to consequential relief, if any, in accordance with the law.