Case Law Details
Grauer & Weil India Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad)
Introduction: In the case of Grauer & Weil India Limited against the Commissioner of Central Excise & ST (CESTAT Ahmedabad), The dispute revolves around the eligibility of Metal Finishing Chemicals and Electroplating Salts for exemption under Notification No. 10/1997-CE. The appellant claims to qualify under the consumables category for research institutions. The CESTAT Ahmedabad order discusses the findings and implications of the case.
Analysis: Grauer & Weil India Limited is engaged in manufacturing Metal Finishing Chemicals and Electroplating Salts. The appellant cleared their products to various research institutions while claiming exemption under Notification No. 10/1997-CE. However, the department contended that these goods did not fall under the specified category in the notification, and demanded Central Excise duty of Rs. 30,25,972. The show cause notice raised issues of eligibility and proper certification.
The appellant argued that their products were consumables for research institutions, making them eligible under the consumables category mentioned in the notification. They presented valid certificates issued by competent authorities to support their claim. The appellant challenged the invocation of extended time proviso under Section 11A of the Central Excise Act, 1944, and the imposition of penal provisions under Section 11AC.
The CESTAT Ahmedabad referred to Notification No. 10/1997-CE and noted that Metal Finishing Chemicals and Electroplating Salts fell under the consumables category specified in 2(b) of the notification. The appellant’s products were intended for use in research institutions, and valid certificates were submitted. The CESTAT ruled in favor of Grauer & Weil India Limited, granting them exemption benefits.
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