Tata Mills Vs. Commissioner of Central Excise,

Tata Mills vs Commissioner of Central Excise,

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai Decided Aug 30, 2001

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Citation: sooperkanoon.com/25305
Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai
Decided On: Aug 30, 2001
Subject: Service Tax

Case Summary

AI-generated summary - not the official court judgment text.

Service Tax

Key legal issue: Service Tax

Parties & Advocates

Appellant / Petitioner

Tata Mills

Respondent

Commissioner of Central Excise,

Excerpt

1. the duty of rs. 5.62 lakhs approx. has been demanded and penalty of rs. 1 lakh imposed on the ground that the binders made by the applicant which it captively uses as an adhesive basis in the manufacturer of non-woven textiles are liable to duty under 35.06 of the tariff.2. the applicant's contention is that the binder lacks stabilisers and polymerising agent, and therefore has a short shelf life, rendering it unmarketable. there is no substantiation whatsoever of this claim before us, no substantiation also appears to have been offered before the deputy commissioner and the commissioner (appeals). we are therefore prima facie unable to accept his claim. the reliance by the counsel on the supreme court judgment in moti laminates pvt. ltd. v.cce 1995 (76) elt 241, and on the circular of the board no. 464/30/99 dated 30.6.99 is misplaced. the supreme court judgment was based on the finding of the fact that the product under consideration by it had a short shelf life and hence was not marketable. the board circular specifically deals with the binders having a short shelf life of a few hours.3. however on the ground that the applicant is an undertaking with regard to which proceedings are pending before the board for industrial and financial reconstruction, we waive deposit of the duty and penalty and stay their recovery.

Full Judgment

1. The duty of Rs. 5.62 lakhs approx. has been demanded and penalty of Rs. 1 lakh imposed on the ground that the binders made by the applicant which it captively uses as an adhesive basis in the manufacturer of non-woven textiles are liable to duty under 35.06 of the Tariff.

2. The applicant's contention is that the binder lacks stabilisers and polymerising agent, and therefore has a short shelf life, rendering it unmarketable. There is no substantiation whatsoever of this claim before us, no substantiation also appears to have been offered before the Deputy Commissioner and the Commissioner (Appeals). We are therefore prima facie unable to accept his claim. The reliance by the counsel on the Supreme Court judgment in Moti Laminates Pvt. Ltd. v.CCE 1995 (76) ELT 241, and on the circular of the Board No. 464/30/99 dated 30.6.99 is misplaced. The Supreme Court judgment was based on the finding of the fact that the product under consideration by it had a short shelf life and hence was not marketable. The Board circular specifically deals with the binders having a short shelf life of a few hours.

3. However on the ground that the applicant is an undertaking with regard to which proceedings are pending before the Board for Industrial and Financial Reconstruction, we waive deposit of the duty and penalty and stay their recovery.

Same Court & Year Customs Excise and Service Tax Appellate Tribunal CESTAT Mumb... Same Parties Tata Mills vs Commissioner of Central Excise, Same Subject Service Tax