2004 (6) TMI 414 - AT - Central Excise

Summary

Issues:
1. Eligibility for SSI exemption under Notification 175/86 for manufacturing welding machines.
2. Denial of benefit of Notification 175/86 due to non-compliance with registration requirements.
3. Interpretation of Notification 175/86 regarding clubbing of clearances from multiple factory sites.
4. Assessment of eligibility for SSI status based on clearances from different factory sites.

Analysis:
1. The appellant, engaged in manufacturing welding machines, claimed SSI exemption under Notification 175/86. The CCE (Appeals) confirmed duty demands of Rs. 10,73,430 arising from denial of SSI exemption. The appellant's eligibility for the exemption was established based on clearances in previous years, making them entitled to the benefit.

2. The appellant shifted to a new premises falling under a different jurisdiction and continued claiming the benefit of Notification 175/86. However, the Assistant Commissioner denied the benefit, citing non-compliance with registration requirements under Para 4(b) of the notification. The Commissioner (Appeals) upheld this decision, stating that the restriction applied to the new factory site, thereby rejecting the claim based on past eligibility at the previous location.

3. Referring to a precedent case, the Tribunal clarified that the clubbing of clearances from multiple factory sites must be considered for assessing eligibility under Notification 175/86. The Tribunal emphasized that once a manufacturer shifts premises, as long as past requirements are met, the benefit cannot be denied solely on the grounds of relocation.

4. The appellant's eligibility for SSI status and exemption under Notification 175/86 was further analyzed based on clearances from different factory sites. The data presented showed that the appellant met the exemption criteria for certain years, entitling them to SSI status as a manufacturer. Therefore, the lower authorities' decision to deny the benefit was deemed without merit, and the appeal was allowed, setting aside the denial of the Notification 175/86 benefit and consequential demands.