Pushpa Match Works Vs Amsarani Match Works (CESTAT Chennai)
CESTAT Chennai held that benefit of notification no. 4/2006-CE dated 01.03.2006 not available to machine dipped match splints as power is used in the manufacture of match splints.
Facts- The appellants purchased ‘machine dipped match splints’ from other match splint manufacturers who were using power in the manufacture of these match splints. Then they undertook box filling and packaging without the aid of power and then cleared at nil rate of duty. Revenue issued Show Cause Notices within the normal period and cases were duly adjudicated denying the benefit of notification no. 4/2006-CE dated 01.03.2006 as they have purchased the match splints from other manufacturers who have used the power in relation to their manufacture of these match splints. As the notification prescribes nil rate of duty for matches in or in relation to the manufacture where none of the following processes is ordinarily carried on with the aid of power namely (i) frame filling and (ii) dipping of splints in the composition for match heads (iii) filling of boxes with matches (iv) pasting of labels on match boxes and (v) packings. As the buyer has used power in the manufacture of match splints, the nil rate of duty is not applicable to the matches manufactured and cleared by these assessees.
Conclusion- The issue involved in these appeals has been already settled in favour of the Revenue by this Tribunal by denying exemption under notification no. 4/2006-CE dated 01.03.2006 in the case of Sri Ganapathy Packing Vs. Commissioner of GST and Central Excise vide Final Order No. 41321to 41354/2019 dated 19.11.2019 as reported in 2020 (2) TMI 1114 CESTAT Chennai.
As per the majority order, the demands were sustained and the assessees appeals were dismissed. The facts and issue being identical in these appeals before us, we do not find any ground to take a different view. Applying the ratio laid down in the majority order, as above, we hold that the orders impugned in these appeals require no interference. Consequently, all these appeals are dismissed.
FULL TEXT OF THE CESTAT CHENNAI ORDER
The appellants, as detailed above, have filed these appeals against the impugned orders confirming the demand of duties along with appropriate interest and also the imposition of penalty denying the benefit of exemption notification no. 4/2006-CE dated 01.03.2006. As all these appeals involve a common issue, they are being disposed of by this common order.
2. In these appeals, the issue relates to applicability of exemption notification no. 4/2006-CE dated 01.03.2006 at Sl. No. 72 which deals with the matches classifiable under Chapter 3605.00.10 or 3605.00.90. The same is extracted hereunder:-
