CCE Vs. Q MAX TEST EQUIPMENT PVT. LTD.

JUDGEMENT

(1.) THE Revenue by these appeals challenges the Order -in -Appeal No. 79/98 (M -II) dated 13.3.1998 passed by the Commissioner of Central Excise (Appeals), Chennai by which he has set aside the Order -in -Original passed by the Assistant Commissioner wherein he has demanded duty of Rs 1,12,505.37 under Section 11A of the CE, Act 1944.

(2.) THE brief facts of the case are that the respondents who are 100% EOU are engaged in the manufacture of varieties of varieties of PCB test and Diagnostic Equipments falling under tariff heading 9031.00 of the CETA 1985. They get goods for the said purpose, without payment of Customs duty as per Notification 1/95 dated 4.1.95. They have cleared the goods viz. PCB test equipment to domestic tariff area on payment of 50% of Customs duty applicable and 50% of Central Excise duty as per Notification No. 13/81 -Cus dated 9.2.81 read with Notification 2/95 -CE dated 4.1,95. They have also claimed the rate of duty at 15% as a concession as per Notification 56/88 -Cus.

(3.) ACCORDING to the department, as per the product literature, the product appeared to be only a PCB tester. It was also revealed that the test equipments were sold only to customers other than manufacturers of goods falling under 85.42 and therefore the department took the stand that the assessees are not eligible to claim the benefits of Notification 56/88 -Cus dated 1.3.88. Proceedings were therefore, initiated by issue of show cause notice dated 30.4.96 and the proceedings resulted in the order of the original authority demanding duty as noted above which on appeal was set aside by the Commissioner (Appeals) under order impugned. Aggrieved by the said order of the Commissioner (Appeals), the Revenue has filed this appeal on the following grounds: