Order date – 06 December 2022

Facts –

• The Appellant, Jay Dan Gigev Welding Works have not obtained any ISI certificate on their product i.e. power driven pump (Water Turbine Pumps) Therefore, exemption of SSI notification 08/2003-CE as amended, is not admissible to the appellant.

Issue –

• Whether the appellant is entitled for SSI exemption Notification No. 8/2003-CE dated 01.03.2003 as amended by Notification No. 8/2006-CE dated 01.03.2006 in respect of power driven pumps which does not bear BIS specification and the appellant did not obtain ISI certificate?

Order –

• The Tribunal relied on the decision in the case of Coronation Industries (Appeal No. E/1091 of 2011 - Cestat) dated 08.09.2022, wherein the product manufactured by assessee i.e. Water Turbine Pumps do not conform to the standard Specified under BIS i.e. they have not obtained ISI Certification for their product. According to Sr. No. (xi) of Annexure to Notification No. 08/2003- CE dated 01.03.2003 the benefit of said notification is not available to such pumps. Accordingly, the Tribunal was of the view that the appellant is not entitled for exemption Notification No. 08/2003- CE dated 01.03.2003 hence demand was correctly confirmed.
• In view of the above judgment, it was held that since the appellant does not have ISI certification to conform the BIS Standard, the appellant is not eligible for SSI exemption Notification No. 8/2003-CE.
• As regards the cum-duty price claimed by the appellant, relying on the decision of Hon’ble Gujarat High Court in the case of Poonam Plastic Industries – 2011 (271) ELT 12 (Guj.) that appellant is entitled for cum-duty price benefit. Accordingly, the Adjudicating Authority shall recalculate the duty by extending the benefit of cum-duty price.
• Since duty shall be re-quantified, the appellant shall be entitled to the option of reduced penalty of 25% subject to payment of re-quantified duty, interest, if any and 25% penalty within one month from the date of communication of re-quantified duty to be made by the Adjudicating Authority to the appellant.
• The appeal is disposed of in the above terms.