SKF India Limited Vs Commissioner of Central Excise (CESTAT Ahmedabad)
Summary: The appeals arose from subsequent proceedings concerning the manufacture of ball and roller bearings classified under Chapter Heading 84 of the Central Excise Tariff Act, 1985. The bearings were ultimately used by Railways, in generation of wind energy or for other purposes, and the entire goods were sold through SKF India Limited. For bearings used for wind energy, the appellants had availed exemption under Notification No. 6/2006-CE dated 01.03.2006.
Revenue issued show cause notices for the period 2009-10 to 2013-14 and thereafter for the subsequent period April 2014 to March 2017, primarily on two grounds: first, that the appellants and SKF India Limited were related persons and, therefore, excise duty was payable on the price at which SKF India Limited sold the goods to ultimate customers; and second, that the appellants were not entitled to the exemption under Notification No. 6/2006-CE in respect of bearings sold for generating electricity from wind.
The appellants submitted that both issues had already been decided in their own case by the Tribunal through Final Order No. A/11135-11137/2020 dated 25.08.2020 for the earlier period. Revenue did not dispute that the earlier Tribunal order had been challenged before the Hon’ble Apex Court, but requested that the present proceedings be kept pending until the Supreme Court decided the matter. The Tribunal noted that no stay had been granted by the Supreme Court and declined the request to keep the matter pending.
