2018 (2) TMI 2140 - AT - Central Excise

Order set aside and case remanded for de novo adjudication with expert evidence and reasonable opportunity to file documents

CCE, New Delhi Versus M/s Swarup Mechanical Works

CESTAT (AT), New Delhi set aside the impugned order and remanded the matter to the adjudicating authority for de novo adjudication, directing ... Benefit of N/N. 1/2011- CE dated 01.03.2011 at Sl. No. 97 - manufacture of REVO brand portable bag closer sewing machine and industrial sewing machine which are the subject matter of the Central Excise Tariff Act, 1985 - HELD THAT:- The impugned order is set aside and the matter remanded to the adjudicating authority to decide the issue de novo after considering these expert opinions, but by providing a reasonable opportunity to the assessee-Respondents to present their case with liberty to file additional documents, if any, as per law. The appeal filed by the Department is allowed by way of remand. Revenue appealed against an order of the adjudicating authority which had allowed exemption under Notification No.1/2011-CE dated 01.03.2011 (Sl. No. 97, sub-heading 8452) for 'Sewing machines other than those with inbuilt motors.' The Department contended the machines had an 'inbuilt motor' and relied on precedent to deny concessional treatment. The assessee produced expert reports (Northern India Textile Research Association; CSIR Central Mechanical Engineering Research Institute; Central Manufacturing Technology Institute, Bangalore) concluding the motors are not 'inbuilt' but attached, and the adjudicating authority accepted the assessee's plea without a merits finding. The Tribunal remanded the matter to the adjudicating authority to 'decide the issue de novo' after considering the expert opinions, granting the assessee a reasonable opportunity to file additional documents and present its case; all issues are kept open. Appeal allowed by way of remand; cross-objection disposed accordingly.