Metal Finishing Chemical or Electroplating salt falls under Category of ‘Consumables’ are Entitled for Benefit of Exemption under Exemption Notification: CESTAT [Read Order]

The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the metal finishing chemical or electroplating salts fall under the category of ‘consumables’ and are entitled to benefit of exemption under exemption notification. 

Grauer & Weil India Limited, the appellant assessee was engaged in the manufacture of excisable goods namely Metal finishing Chemicals, Electroplating Salts and the assessee had been clearing their product to various research Institutions like Bhabha Atomic Research Centre, Space Application Centre, ISRO Satellite Centre, Central Electronics Engineering Research, Electronics and Radar Development, National Aerospace Laboratories, Naval Dockyard, etc. 

The assessee appealed against the order passed by the Commissioner for confirming the demand of Central Excise Duty and rejection of the benefit of exemption under exemption notification. 

Jagdish Surti, the counsel for the assessee contended that the Metal Finishing chemical and Electroplating salt are consumables for institutions that are engaged in the work of research which states that accessories and spare parts thereof and consumables. 

Further submitted that all valid certificates issued by the competent authorities and had subsequently mentioned that the assessee is entitled to the benefit of Notification. 

Rajesh K Agarwal, the counsel for the revenue department relied on the decisions made by the lower authorities and contended that the demand for Central Excise duty was as per the law and liable to be sustained. 

The Bench observed that the products manufactured by the assessee are covered under the category of consumables as mentioned in the Notification and eligible for benefits of exemption under exemption notification. 

The two-member bench comprising Ramesh Nair (Judicial) and C.L Mahar (Technical) quashed the demand of Central Excise Duty while allowing the appeal filed by the assessee. 

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