2019 (4) TMI 1332 - AT - Central Excise

Tribunal Decision: Cause Title Substitution, 12% Duty, Exemption Rejection

The Tribunal approved the application for substitution of the Cause Title, upheld the duty payment at 12% of the Retail Sale Price for cement clearances, ... Valuation - clearances made to Deputy Commissioner Singhbhum - institutional customers - HELD THAT:- There is no infirmity in the proposal the respondent has asserted categorically that no such supplies were made during the disputed period - As such the Revenue’s appeal is rejected but with the direction to the adjudicating authority to charge duty @Rs.400 Per MT if any such clearances have been made in the disputed period. Appeal dismissed - decided against Revenue. Issues:1. Application for substitution of the Cause Title2. Dispute regarding Central Excise duty on cement clearances3. Eligibility for exemption under Notification No. 4/2006-CEAnalysis:1. Application for substitution of the Cause Title:The appellant filed a Miscellaneous Application for substitution of the Cause Title, supported by a Certificate of Incorporation demonstrating a change in the company's name from M/s Lafarge India Ltd. to M/s Nuvoco Vistas Corporation Ltd. The Tribunal allowed the application based on the provided certificate, thereby approving the change in the Cause Title.2. Dispute regarding Central Excise duty on cement clearances:The dispute revolved around the Central Excise duty on cement clearances made by the appellant from November 2007 to March 2009. The appellant, a cement manufacturer, had cleared cement to various buyers, including institutional and retail customers. The duty rates were determined based on the Retail Sale Price (RSP) of the cement bags. The Department contended that the highest RSP should be considered for duty calculation, leading to a higher duty rate of Rs. 600 per metric ton. However, the adjudicating authority approved the payment of duty at 12% of the RSP, which was challenged by the Revenue in the appeal.3. Eligibility for exemption under Notification No. 4/2006-CE:The main issue in the appeal was whether the appellant was eligible for exemption under Notification No. 4/2006-CE for supplies of cement made to Deputy Commissioner, Singhbhum, and other similar customers. The Revenue argued that the duty should be charged at Rs. 400 per metric ton for such clearances under Sl. No. 1C of the Notification. The Tribunal found that no supplies were made to Deputy Commissioner, Singhbhum, or similar institutional customers during the disputed period. Consequently, the appeal by Revenue was rejected, with a direction to charge duty at Rs. 400 per metric ton only if such clearances were made.In conclusion, the Tribunal allowed the application for substitution of the Cause Title, resolved the dispute regarding Central Excise duty on cement clearances by upholding the duty payment at 12% of the RSP, and rejected the Revenue's appeal on the eligibility for exemption under Notification No. 4/2006-CE due to the absence of relevant clearances during the disputed period.