Excise Duty on Aluminium Circles for Utensil Manufacturing: CESTAT Sets Aside Demand and Grants Exemption [Read Order]
The Revenue had initially held the appellant liable for duty on the circles, but the tribunal ruled that the aluminium circles, used in the production of final goods (utensils), qualified for exemption under Notification No. 67/95-CE
![Excise Duty on Aluminium Circles for Utensil Manufacturing: CESTAT Sets Aside Demand and Grants Exemption [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/02/CESTAT-CESTAT-Kolkata-Excise-and-Customs-Excise-Duty-on-Aluminium-Circles-TAXSCAN.jpg "Excise Duty on Aluminium Circles for Utensil Manufacturing: CESTAT Sets Aside Demand and Grants Exemption [Read Order]")
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal ( CESTAT ) set aside the excise duty demand on aluminium circles used for utensil manufacturing by the assessee. Mayur Aluminium Industries Private Limited,appellant-assessee,operated an integrated unit manufacturing aluminium utensils. The process involved melting ingots in a furnace, rolling them into...
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal ( CESTAT ) set aside the excise duty demand on aluminium circles used for utensil manufacturing by the assessee.
Mayur Aluminium Industries Private Limited,appellant-assessee,operated an integrated unit manufacturing aluminium utensils. The process involved melting ingots in a furnace, rolling them into aluminium circles, and using these circles to make utensils. These circles, classified under CETH 7606 91 10, attracted a 10% excise duty.
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The Revenue held that the assessee was liable to pay duty on the aluminium circles. After adjudication, the demand for duty was confirmed, along with interest and a penalty.The assessee appealed before the tribunal.
The assessee's counsel argued that the aluminium circles were used to make utensils, qualifying for exemption under Notification No. 67/95-CE dated 16.03.1995. Since duty was paid on the final goods, the counsel contended that the duty demand was not justified.
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The two member bench comprising Ashok Jindal ( Judicial Member ) and Rajeev Tandon ( Technical Member ) found that the facts were clear: the assessee made aluminium articles used to produce utensils. They processed aluminium scraps into ingots, then rolled them into circles for making utensils.
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Since the circles were used within the factory for final product manufacturing, the tribunal ruled the assessee was entitled to exemption under Notification No. 67/95-CE. The duty demand was set aside, and no penalty was imposed.
Read More: CESTAT sets aside Demand of Duty for period prior to starting of Commercial Production
In conclusion,the appeal filed by the assessee was allowed for consequential relief.
To Read the full text of the Order CLICK HERE
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