2019 (3) TMI 661 - AT - Central Excise

Appeal allowed, duty demand set aside based on lack of evidence, supported by exemption eligibility confirmation.

M/s Dux Naturals Versus CCE, Chandigarh-I

M/s Dux Naturals Versus CCE, Chandigarh-I - TMI Issues:Demand of duty due to denial of benefit of exemption under Notification No. 49-50/2003 dated 10.06.2003.Analysis:Issue 1: Mandatory Declaration for ExemptionThe appellant failed to provide evidence of filing the mandatory declaration required to claim exemption under Notification No. 49-50/2003 dated 10.06.2003. The appellant's argument that a consultant might have filed the declaration, but no record was available, was not substantiated. The absence of documentary proof led to a ruling against the appellant on this issue.Issue 2: Communication from General Manager, District Industries CentreA communication dated 16.10.2008 from the General Manager, District Industries Centre, Shimla, confirmed the establishment of the appellant's unit for Harbal Cosmetics. The Revenue did not provide any substantial evidence to refute this communication. The tribunal considered this communication as the intimation required under Notification No. 49-50/2003 dated 10.06.2003, thereby supporting the appellant's claim for exemption from 16.10.2008 onwards.Precedent and Legal InterpretationThe tribunal referred to a previous case, Indica Industries Pvt Ltd, where compliance with notification conditions was analyzed. The tribunal emphasized that the department had been adequately informed about the unit's existence, products manufactured, and exemptions claimed. Drawing parallels, the tribunal concluded that the appellant's situation warranted exemption from 16.10.2008 and SSI exemption under Notification No. 08/2003-CE dated 01.03.2003 for the period before that date. Consequently, no duty demand was deemed sustainable against the appellant.ConclusionIn light of the above analysis, the impugned order was set aside, and the appeal was allowed with any necessary consequential relief. The judgment, delivered on 15.02.2019 by Mr. Ashok Jindal, Member (Judicial) at the Appellate Tribunal CESTAT CHANDIGARH, favored the appellant based on the lack of evidence for mandatory declaration and the acceptance of the communication from the General Manager, District Industries Centre as valid intimation for exemption under the relevant notification.