1995 (9) TMI 149 - AT - Central Excise

Tribunal remands case on Marine Plywood conformity to ISI standards, stresses marking compliance

The Tribunal set aside the lower authorities' decisions and remanded the case for fresh adjudication as the appellants failed to prove conformity to ISI ... Plywood Issues:Entitlement for concessional rate of duty under Notification No. 55/79, dated 1-3-1979, as amended by Notification No. 124/85, dated 16-5-1985.Analysis:The appeal was against the order-in-appeal passed by the Collector of Central Excise (Appeals), Calcutta. The case involved M/s. Wood Craft Products Ltd, Jeypore, who were manufacturing plywood and had removed Marine Plywood without ISI marking, resulting in a demand for Central Excise Duty. The Assistant Collector confirmed the demand, and the appellants appealed to the Collector (Appeals) unsuccessfully, leading to the current appeal. In the absence of the appellants, the Tribunal examined the case based on written submissions and arguments by the learned SDR. The SDR highlighted the change in law with Notification No. 124/85, dated 16-5-1985, which made concessional rates conditional on ISI standards for Marine Plywood. The appellants, under Self Removal Procedure, failed to update their Form I despite the new notification, leading to non-compliance with Rule 173B of the Central Excise Rules, 1944. The burden of proof was on the appellants to show conformity to ISI standards, as per the Supreme Court's ruling in a previous case. The authorities found the appellants failed to prove conformity, as they did not emboss the plywood with required markings or submit necessary documents. The appellants argued against the embossing requirement, but the Tribunal deemed it necessary for differentiation post-Notification No. 124/85.The main issue was whether the appellants were entitled to the concessional rate of duty under the relevant notifications during the specified period. Both lower authorities concluded the appellants did not prove conformity to ISI standards for the Marine Plywood removed. The appellants argued against embossing requirements, citing test reports conducted to ensure conformity. However, the Tribunal found the test reports inconclusive in establishing conformity during the relevant period. As a result, the Tribunal set aside the impugned orders and remanded the case to the Assistant Collector for fresh adjudication in line with the law and principles of natural justice. The decision aimed to ensure a fair assessment of the appellants' entitlement to the concessional rate of duty based on ISI standards for Marine Plywood.