2002 (10) TMI 160 - AT - Central Excise

Tribunal affirms assessee's duty payment choice for Waste and Scrap, rejects Revenue's appeal

The Tribunal upheld the Commissioner (Appeals) decision in favor of the assessee, dismissing the Revenue's appeal. It ruled that the assessee's conscious ... SSI Exemption - Value of clearances - Computation of Issues: Revenue appeal against Order-in-Appeal allowing appeal by assessee, duty payment options under Notification No. 1/93, Modvat credit, applicability of previous judgments.Analysis:1. The Revenue appealed against the Order-in-Appeal that favored the assessee, challenging the payment of excise duty at normal rate for specified goods while claiming concessional rate for others under Notification No. 1/93. The Revenue contended that the manufacturer cannot selectively pay duty rates and must adhere to a uniform rate for all clearances within a financial year. Citing previous Tribunal decisions and a Ministry circular, the Revenue argued that the assessee's actions were not in compliance with the notification's provisions.2. The Revenue, represented by the ld. DR, reiterated their grounds for appeal, seeking to set aside the Commissioner (Appeals) order and reinstate the Assistant Commissioner's decision. On the other hand, the Respondents argued through their ld. Counsel that they consciously paid duty on Waste and Scrap at a normal rate while availing concessional rate for Switches, without claiming Modvat credit. They emphasized distinctions from previous cases cited by the Revenue and highlighted the dismissal of an appeal by the Hon'ble Apex Court in a related matter. The Respondents urged to uphold the Commissioner (Appeals) order and dismiss the Revenue's appeal.3. The Tribunal analyzed the issue raised by the ld. Commissioner (Appeals) regarding the payment of duty at normal rate for Waste and Scrap while claiming concessional rate for Switches under Notification No. 1/93. The Tribunal upheld the Commissioner (Appeals) decision, emphasizing that the assessee's conscious choice to pay duty at normal rate for Waste and Scrap did not extend to Switches, as no such option was exercised for the latter. The Tribunal found the ld. Commissioner (Appeals) reasoning legally sound and proper, thus dismissing the Revenue's appeal and affirming the order in favor of the assessee.In conclusion, the Tribunal's detailed analysis of the duty payment options under Notification No. 1/93, consideration of Modvat credit implications, and differentiation from previous judgments led to the dismissal of the Revenue's appeal and the upholding of the Commissioner (Appeals) decision in favor of the assessee.