Case Law Details
EPCOS India Limited Vs Commissioner of Central Excise (CESTAT Kolkata)
In the case of EPCOS India Limited versus the Commissioner of Central Excise, the issue revolves around the applicability of Basic Customs Duty on imported Zinc Oxide used in the manufacture of Pre-Calcined Ferrite Powder (PCFP). The appellant contests the demand for customs duty, citing exemption Notification No.26/2002-Cus dated 01.03.2002.
The appellant, EPCOS India Limited, imports Zinc Oxide, among other materials, for the production of Ferrites and PCFP. The contention arises from the Customs department’s denial of duty exemption under Notification No.26/2002-Cus dated 01.03.2002. The crux of the matter lies in whether the imported Zinc Oxide was indeed utilized in manufacturing PCFP, thereby qualifying for the exemption.
Upon examination, it’s revealed that the appellant did import Zinc Oxide under the mentioned notification. However, a dispute arose concerning the actual utilization of this material in PCFP production. The department initially raised concerns based on a letter from the appellant, later rectified, regarding PCFP production. Nevertheless, subsequent investigations confirmed the usage of Zinc Oxide in PCFP manufacturing, with some quantities sold in the market and others used in further production.
The appellate authority considered the evidence, including reports from field investigations, affirming the utilization of Zinc Oxide in PCFP manufacture. Consequently, the appellant’s entitlement to the duty exemption under the mentioned notification was upheld.
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