- (1.) THIS appeal is directed against the order of Customs, Excise and service Tax Appellate Tribunal, New Delhi dtd. 30 -10 -2003. The appellant is 100% export oriented unit engaged in the manufacture of cotton yarn and polyester yarn falling under Chapter 52 and 55 respectively of the schedule -I of the Central Excise Tariff Act, 1985. It has brought in the factory aluminum sheets and fiber glass for the purpose of its use and has actually been used in laying false ceiling and humidification plant.
(2.) ACCORDING to the assessee, it has used fiber glass and aluminum sheets for providing false ceiling in humidification plant to obtain better efficiency of the plant. He, therefore, procured the aforesaid goods without payment of Duty relying on the notification No. 1/95 C.E., dated 4 -1 -1995 by issuing CT -3 certificate. The Assistant Commissioner of Central Excise issued show cause notices dtd. 5 -9 -2001 calling upon the assessee to show cause against the proposed levy of Excise Duty on the aforesaid goods, which according to the assessing officer was leviable and did not fall within the provisions of Exemption Notification No. 1/95 issued under Section 5A of the Central Excise Act, 1944 and proposed penalty under Rule 173Q of the Rules of 1994 read with Rule 25 of the Central Excise Rules, 2001 for contravention of the provisions of Rule 192 of the Rules of 1994 read with Notification No. 1/95 -C.E.
(3.) THE assessee replied by stating that item in question are part of humidification system and covered under the category of capita! goods and hence exemption from Duty for user of aforesaid items for humidification system cannot be denied merely because there is no specific mention of fiber glass and aluminum sheets in the Notification (Annex. 1).;