The assessee is a manufacturer of particle board. It is exempt from payment of central excise duty. During the course of manufacture, intermediate product viz. impregnated paper comes into existence. The Revenue proposed to demand central excise duty on such intermediate products. Periodical show cause notices were issued and demands were confirmed. The appellate authority upheld the demands. The Hon’ble CESTAT, Mumbai upheld the demand of duty, whilst setting aside the penalty. Hence, appeals were filed before the Hon’ble Supreme Court.
It was contended that: (i) the Tribunal had erred in as much as the intermediate product was not marketable and did not have shelf life, hence, as per Judgment of Supreme Court in Moti Laminates, no duty is payable; (i) the reliance placed on test report is incorrect as the sample of the product was confused with the specimen of the test sample. The Supreme Court condoned the delay and admitted the appeal.
Eco Board Industries Limited v. Commissioner of C. E. and ST, Pune – III – Civil Appeal Diary No(s) 24478 of 2024 [Supreme Court]
