The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) granted relief to Kalki industries by quashing the excise duty demand on clearance of electrical and lighting accessories on the ground of Small Scale Industry (SSI) exemption.
Kalki Industries, the appellant assessee was a manufacturer of ‘electrical accessories’ and ‘lighting accessories’, and availing the benefit of notification intended for ‘small-scale industry.
The assessee appealed against the order passed by the Commissioner of Central Excise (Appeals) for confirming the duties of central excise amounting to Rs.9,73,258 on clearance excisable goods under section 11A of Central Excise Act, 1944, along with interest as applicable under section 11AA of Central Excise Act and imposition of penalty under section 11AC of Central Excise Act.
S P Sheth, the counsel for the assessee contended that in the case of Campion Plastic Industries Ltd, the court held that the assessee was registered with their trade mark they were eligible for small-scale industry exemption.
P.K Acharya, the counsel for the department relied on the decisions made by the lower authorities and contended that the demand raised by the revenue was as per the law and liable to be sustained.
The Bench observed that the assessee was eligible to avail the small-scale industry exemption and the demand was not sustainable.
The two-member bench comprising Ajay Sharma (Judicial) and C J Mathew (Technical) quashed the excise duty demand while allowing the appeal filed by the assessee.
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