2018 (2) TMI 1002 - AT - Central Excise

Tribunal affirms dismissal of duty exemption appeal due to lack of evidence.

Commissioner of Central Excise, Customs and Service Tax Cochin-cce Versus Coods Agro Pvt Ltd

The Tribunal upheld the Commissioner(Appeals)'s decision to dismiss the Department's appeal against the rejection of duty exemption for small scale ... Manufacture - repacking / relabeling of the Copper Sulphate purchased from other suppliers - It was alleged in the SCN that the respondent had not taken into account the value of Copper Sulphate purchased from other manufacturers and sold to customers after repacking and relabelling at their sales depot at Chikmaglur - Held that: - Revenue has not been able to bring any evidence on record to prove that the respondent has been carrying out labelling or relabeling of Copper Sulphate purchased from other dealers - appeal dismissed - decided against Revenue. Issues:Appeal against rejection of duty exemption for small scale industries under specific notifications due to alleged repacking and relabeling of Copper Sulphate purchased from other manufacturers.Analysis:The appeal was directed against the order passed by the Commissioner(Appeals) rejecting the appeal filed by the Department and upholding the order-in-original. The respondents were engaged in manufacturing Copper Sulphate and availing duty exemption under specific notifications for small scale industries. The show-cause notice alleged that the respondents did not consider the value of Copper Sulphate purchased from other manufacturers and sold after repacking and relabeling, affecting their eligibility for the duty exemption. The original authority dropped the proceedings, leading to the Department's appeal before the Commissioner(Appeals), who also dismissed it. The Revenue argued that the impugned order was not sustainable, mentioning an appeal filed by the Department against a previous decision in favor of the respondent. The respondent's counsel defended the order, stating that no evidence supported the repacking or relabeling claims made by the Revenue. The Commissioner(Appeals) observed discrepancies in the evidence provided by the Department, leading to the dismissal of the appeal.Upon hearing both parties and examining the records, the Tribunal found no issues with the Commissioner(Appeals)'s decision to uphold the Order-in-Original. The Revenue failed to substantiate the allegations of repacking or relabeling of Copper Sulphate purchased from other dealers by the respondent. The Tribunal concluded that the Revenue did not provide any evidence to support their claims, leading to the dismissal of the Revenue's appeal. The impugned order was upheld, and the appeal of the Revenue was dismissed.