2000 (10) TMI 110 - AT - Central Excise

Tribunal Grants Appeal for Exemption Benefits on Cement Manufacturing Machinery

The appeal was decided in favor of the appellants. The Tribunal ruled that the denial of benefits under Notification No. 36/94 for cement concrete blocks ... Cement concrete blocks - Exemption - Capital goods Issues:1. Denial of benefit under Notification No. 36/94 for manufacturing cement concrete blocks.2. Denial of benefit under Notification No. 67/95 for parts of cement manufacturing machinery.Analysis:Issue 1: Denial of benefit under Notification No. 36/94The appellants, engaged in cement manufacturing, claimed benefits under Notification No. 36/94 for cement concrete blocks. The denial was based on the location of manufacturing activities, which were carried out at a pre-cast yard away from the construction plant. The appellant's representative cited a Tribunal case emphasizing a liberal interpretation of 'manufactured at the site of construction.' The Tribunal held that the narrow interpretation by the Commissioner was erroneous and that notifications must be interpreted to ensure intended benefits are enjoyed by the assesses. The Tribunal ruled in favor of the appellants, stating there was no justification to deny the benefit under Notification No. 36/94.Issue 2: Denial of benefit under Notification No. 67/95Regarding the denial of benefits under Notification No. 67/95 for parts of cement manufacturing machinery due to the absence of a cement production factory, the appellant's representative argued that the factory of production refers to items produced within the factory, not just the finished product. The representative referenced a Tribunal decision supporting this interpretation. The Tribunal agreed with the appellant, noting that Notification No. 67/95 grants exemption to capital goods manufactured in and used within the factory of production. Consequently, the Tribunal found no justification to deny the benefit under Notification No. 67/95. As a result, the appellants succeeded on this issue as well.In conclusion, the appeal was disposed of in favor of the appellants, with benefits granted under both Notification No. 36/94 and Notification No. 67/95.