2004 (12) TMI 260 - AT - Central Excise

Tribunal grants Notification benefits based on certified capacity, highlights authority certification importance

The Tribunal allowed the appeals, setting aside the denial of Notification benefits to the appellants. The decision was based on the certified installed ... Cement - Exemption Issues:1. Denial of benefit of Notification No. 24/91-C.E. and 5/93 dt. 28-2-1993.2. Installed capacity of the plant exceeding 1,98,000 tonnes per annum.3. Competency of the Directorate of Industries certification.4. Interpretation of conditions for concessional rate of duty under notifications.Analysis:The appellant filed appeals against the adjudication order denying the benefit of Notification No. 24/91-C.E. and 5/93. The appellants, engaged in manufacturing Ordinary Portland Cement, availed the benefit of the notifications for concessional duty rates. A show cause notice was issued due to the plant's annual capacity exceeding 1,98,000 tonnes per annum, challenging their eligibility for the concessional rate.The adjudicating authority initially denied the benefit of the notification, leading to an appeal. The Tribunal remanded the matter to ascertain the plant's installed capacity during the relevant period. Upon obtaining a fresh certificate on the installed capacity, the revenue authorities reaffirmed the denial of notification benefits.The appellant contended that the Directorate of Industries certified the plant's capacity as less than 1,98,000 tonnes per annum after considering all relevant factors. The revenue argued that various documents indicated an installed capacity exceeding the threshold, based on declarations made before and after expansions.The notifications specified conditions for concessional duty rates based on the plant's rotary kiln usage and certified installed capacity not exceeding 1,98,000 tonnes per annum. The Tribunal, in the interest of justice, directed the competent authority to certify the installed capacity, considering all evidence. Upon receiving a certificate confirming a capacity below the threshold, the Tribunal found the appellants entitled to the notification benefits, setting aside the impugned order and allowing the appeals.In conclusion, the Tribunal's decision hinged on the certified installed capacity falling below the specified limit, thus entitling the appellants to the concessional rate of duty under the notifications. The competent authority's certification played a crucial role in determining eligibility, emphasizing compliance with the notification conditions for concessional benefits.