TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>CEGAT rules broad duty exemption on remade precious metal articles; clarifies refund procedures</h1> The Appellate Tribunal CEGAT, New Delhi, in interpreting Notification No. 131/81, held that the duty exemption on articles remade from precious metals ... Metal articles - Precious metal articles - Interpretation of exemption notification Issues:Interpretation of Notification No. 131/81 for exemption of duty on remade articles made of precious metals like platinum, Rejection of appellant's claim by lower authorities based on job work basis requirement for exemption eligibility, Doubt raised by the Department regarding the application of the notification, Reconsideration of Tribunal's decision in Final Order No. 618/97-D, Extent of exemption under the notification, Ambiguity in the language of the notification regarding materials added and amount charged for remaking, Justification for granting exemption to articles remade from old or used articles of specified metals, Grant of refund subject to provisions of Section 11B of the Central Excise Act, 1944 and precedent in Mafatlal Industries Ltd., 1997 (89) E.L.T. 247 (S.C.).Detailed Analysis:The judgment by the Appellate Tribunal CEGAT, New Delhi dealt with the interpretation of Notification No. 131/81 concerning the exemption of duty on articles remade from precious metals like platinum. The appellant's claim for the benefit of the notification was rejected by the lower authorities, citing that the notification applied only to articles remade by job workers who receive old articles from customers, and since the appellant was not working on a job work basis, the exemption did not apply.In a previous Tribunal order, the Department raised a similar contention regarding the application of the notification, which was overruled. The Department sought reconsideration, arguing that any doubt in the notification should favor the Department, not the assessee. The Tribunal analyzed the notification, emphasizing that the exemption applied to articles remade from old or used articles made of specified metals, regardless of whether the remaking was done on a job work basis. The Tribunal disagreed with the Department's interpretation of the notification's language regarding the value of materials added and the amount charged for remaking.The Tribunal clarified that the notification aimed to exempt articles made from expensive and precious metals like platinum, and the language used did not restrict the application of the notification based on additional materials used or job work charges. The Tribunal highlighted that the price of such precious metal articles is calculated based on metal content, charges, and profit, and the notification's language did not introduce ambiguity in its eligibility criteria. Therefore, the Tribunal upheld the view taken in a previous order and set aside the lower authorities' decisions, allowing the appeals.Regarding the refund claims in dispute, the Tribunal noted that the grant of refund would be subject to the provisions of Section 11B of the Central Excise Act, 1944, and the decision in Mafatlal Industries Ltd., 1997 (89) E.L.T. 247 (S.C.). This aspect emphasized the procedural requirements for granting refunds under the Central Excise Act and the relevance of established legal precedents in such matters.
TaxTMI 
TaxTMI 
