Vaishno Devi Enterprises v. CCE

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The Tax Publishers2019 TaxPub(EX) 70 2018 (365) E.L.T. 332 Vaishno Devi Enterprises v. CCE CENTRAL EXCISE ACT, 1944 --SSI exemption --Classification of manufactured goodsEligibility of----Where there was no rebuttal to findings of AA that assessee did not have the machinery to manufacture PU Foam and manufacturing process adopted by them clearly showed that what was being manufactured was Waste Foam Sheet and also examined the raw materials required for manufacture of PU Foam and had clearly came to a finding that no such material was purchased by assessee from the market, therefore, appeal of assessee was allowed.--Assessee claimed SSI exemption of the product being manufactured by it. Whereas revenue had classified assessee's final product as “PU Foam Sheets” classifiable under Chapter Heading No. 39211310 of First Schedule to CETA, which was not entitled to SSI exemption in terms of Notification No. 8/2003-C. Assessee contended that the product being manufactured by it was “Waste Scrap Foam Sheet” and was properly classifiable under Tariff Heading No. 39211900, which was eligible for benefit of exemption Notification No. 8/2003-CE. Proceedings initiated against assessee were adjudicated by ACCE, dropping the demands, vacating the show cause notice and held classification in favour of assessee.Held: Appellate authority had simplicitor gone by the facts of pre dominance of PU polyurethane in the product as reported by Chemical Examiner. Apart from that, there was no rebuttal to findings of AA that assessee did not have the machinery to manufacture PU Foam and manufacturing process adopted by them clearly showed that what was being manufactured is Waste Foam Sheet. The Original Adjudicating Authority had also examined the raw materials required for the manufacture of PU Foam and had clearly came to a finding that no such material was purchased by assessee from the market. Therefore, appeal of assessee was allowed. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2019 TaxPub(EX) 70 2018 (365) E.L.T. 332

Vaishno Devi Enterprises v. CCE

CENTRAL EXCISE ACT, 1944

--SSI exemption --Classification of manufactured goodsEligibility of----Where there was no rebuttal to findings of AA that assessee did not have the machinery to manufacture PU Foam and manufacturing process adopted by them clearly showed that what was being manufactured was Waste Foam Sheet and also examined the raw materials required for manufacture of PU Foam and had clearly came to a finding that no such material was purchased by assessee from the market, therefore, appeal of assessee was allowed.--Assessee claimed SSI exemption of the product being manufactured by it. Whereas revenue had classified assessee's final product as “PU Foam Sheets” classifiable under Chapter Heading No. 39211310 of First Schedule to CETA, which was not entitled to SSI exemption in terms of Notification No. 8/2003-C. Assessee contended that the product being manufactured by it was “Waste Scrap Foam Sheet” and was properly classifiable under Tariff Heading No. 39211900, which was eligible for benefit of exemption Notification No. 8/2003-CE. Proceedings initiated against assessee were adjudicated by ACCE, dropping the demands, vacating the show cause notice and held classification in favour of assessee.Held: Appellate authority had simplicitor gone by the facts of pre dominance of PU polyurethane in the product as reported by Chemical Examiner. Apart from that, there was no rebuttal to findings of AA that assessee did not have the machinery to manufacture PU Foam and manufacturing process adopted by them clearly showed that what was being manufactured is Waste Foam Sheet. The Original Adjudicating Authority had also examined the raw materials required for the manufacture of PU Foam and had clearly came to a finding that no such material was purchased by assessee from the market. Therefore, appeal of assessee was allowed.