2008 (9) TMI 33

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.... denied by the Department on the ground that trimmed or untrimmed circles of brass cannot fall under S.No.200 but they fall under S.No.201 where rate of duty is Rs.3500 PMT. It may be stated that if the product in question falls under S.No.200, then the rate of duty is nil. This is the narrow controversy in the present case. To resolve this dispute, we quote hereinbelow relevant extract of Notification No.3/2001-CE, dated 1.3.2001.  S. No.   Chapter or heading No. or sub-heading No.   Description of goods Rate under the  First Schedule Rate under the Second Schedule Condition No. 200 74.09 All goods other than trimmed or untrimmed  sheets of circles of copper, intended for use....

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....57AB or rule 57AK of the Central Excise Rules, 1944 has been taken; (b) the entire amount of duty is paid in cash or through account-current; and (c) such goods are not produced or manufactured by a manufacturer who produces or manufactures copper from copper ore or copper concentrate: Provided that the duty shall not be payable by a manufacturer who produces or manufactures trimmed sheets or circles from duty paid untrimmed sheets or circles. In this case it is not disputed by the Department before the Tribunal that the circles manufactured by the assessee are from brass. According to the Department, brass is an alloy of copper/zinc and, consequently, trimmed or untrimmed circles of brass used in the manufacture of utensils wou....

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....ct must be given to it. While interpreting the exemption notification, one cannot go by rules of interpretation applicable to cases of classification under the Tariff. Tariff items in certain cases are required to be interpreted in cases of classification disputes in terms of HSN, which is the basis of the Tariff. In this case, we are not concerned with interpretation of Tariff. In fact, as stated above, the product in question falls under Chapter Heading 74.09. It is the dichotomy which is introduced by the exemption Notification which needs to be interpreted. Items made from copper attract duty at the rate of Rs.3500 PMT whereas circles made from brass attract nil rate of duty. As stated above, in this case, the Department has not dispute....