UNIFLEX CABLES LTD. versus COMMISSIONER, CENTRAL EXCISE, SURAT-II

UNIFLEX CABLES LTD. versus COMMISSIONER, CENTRAL EXCISE, SURAT-II

The exemption under Notification No. 205/88-C.E. as amended by Notification No. 57/95 does not apply to insulated electrical cables supplied by the appellant for use in wind mills, as decided in Nicco Corporation Ltd.; penalty is not justified as the issue was interpretational and there was no evidence of deliberate wrongdoing.

Parties
Appellant: Uniflex Cables Ltd.; Respondent: Commissioner, Central Excise, Surat-II
Jurisdiction
India
Judgment Date
24 August 2011
Procedural Posture
Civil Appeal / Appeal From Tribunal Decision
Outcome
Appeal partly allowed
Legal Topics
Exemption Notification, Interpretation of Notification, Imposition of Penalty
Central Excise Law Exemption Notification Interpretation of Notification Imposition of Penalty

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Parties

Uniflex Cables Ltd.

Appellant

Commissioner, Central Excise, Surat-II

Respondent

Procedural Posture

Civil Appeal / Appeal From Tribunal Decision

Legal Issues

  1. 1 Eligibility of insulated electrical cables for exemption under Notification No. 205/88-C.E. as amended by Notification No. 57/95
  2. 2 Justification of penalty imposition under Rule 173Q(1) given facts and circumstances

Ratio Decidendi

The exemption under Notification No. 205/88-C.E. as amended by Notification No. 57/95 does not apply to insulated electrical cables supplied by the appellant for use in wind mills, as decided in Nicco Corporation Ltd.; penalty is not justified as the issue was interpretational and there was no evidence of deliberate wrongdoing.

Court Disposition

Appeal partly allowed

Orders

  • Order of Commissioner imposing penalty and Tribunal's confirmation of penalty quashed
  • Appeal allowed to extent penalty is set aside; parties to bear their own costs