1997 (9) TMI 175 - AT - Central Excise

Tribunal remands case to determine Mortars' exemption eligibility under Notification No. 217/86.

STEEL AUTHORITY OF INDIA Versus COLLECTOR OF CENTRAL EXCISE, INDORE

STEEL AUTHORITY OF INDIA Versus COLLECTOR OF CENTRAL EXCISE, INDORE - 1997 (95) E.L.T. 220 (Tribunal) Issues:Dispute regarding eligibility for benefit of exemption under Notification No. 217/86 for Mortars used in lining furnaces and their repair and maintenance.Detailed Analysis:1. The appellant contended that their Mortars, used for lining furnaces in their steel manufacturing plant, were eligible for exemption under Notification No. 217/86. The Assistant Collector had denied the benefit, stating it was not shown to be used as an input in or in relation to the manufacture of final products. The Collector (Appeals) upheld this decision and did not consider the alternative prayer for benefit under Notification No. 281/86.2. The appellants argued that the Mortars were captively consumed for repair and maintenance of furnaces used in the production of iron and steel, falling under specific Tariff chapters. They claimed that the Mortars satisfied the conditions of Notification 217/86 as an input used in relation to the manufacture of the final product, citing Tribunal orders and Supreme Court judgments interpreting similar phrases broadly.3. The appellant highlighted that the Mortars were refractory in nature, aligning with principles from previous Tribunal orders concerning refractory materials. They emphasized that the lower authorities did not pass a speaking order on the eligibility of the Mortars under the mentioned notifications, urging for a thorough consideration of the case on merits.4. The Departmental Representative did not object to remanding the matter for further consideration. The Tribunal observed that the Assistant Collector's rejection was based on lack of substantiation and ex parte order due to non-appearance. The Tribunal noted that the factory being under Central Excise control, relevant facts should have been known, and further verification could have been conducted if needed.5. The Tribunal emphasized the need for specific findings on whether the Mortars were refractory in nature and how the changed Tariff structure impacted their classification. Considering the lack of comprehensive analysis by the lower authorities, the Tribunal set aside the impugned orders and remanded the matter for fresh consideration by the Assistant Collector, directing a specific finding on the applicability of the notifications in question.This detailed analysis outlines the key arguments, interpretations of legal provisions, and the Tribunal's decision to remand the case for further examination, ensuring a specific determination on the eligibility of the Mortars for exemption under the relevant notifications.