2005 (9) TMI 433 - AT - Central Excise

Summary

Issues:
1. Interpretation of SSI exemption under Notification No. 1/93-C.E.
2. Validity of splitting the value of a particular clearance to avail exemption benefits.
3. Comparison of conflicting decisions by different authorities.

Analysis:
1. The appeal concerned the interpretation of the Small Scale Industries (SSI) exemption under Notification No. 1/93-C.E., allowing duty exemption up to Rs. 75 lakhs in aggregate value of clearances for the fiscal year. The dispute arose when the assessee split a clearance value to maximize exemption benefits, which was contested by the Revenue.

2. The Commissioner (Appeals) held in favor of the assessee, allowing the split of the clearance value to enjoy full exemption benefits. The Original Authority disagreed with this approach, but the first appellate authority supported the assessee's action by citing a Tribunal decision in Sri Venkateshwara Textile Engineering v. CCE. The Revenue challenged this decision, leading to the appeal.

3. Despite no representation from the respondents, the Tribunal analyzed the conflicting decisions. The Tribunal referred to a previous case, CCE Madras v. Helios Antennas & Electronics, where a similar issue arose under a different notification. The Tribunal in that case allowed deduction based on the value of goods cleared, not the quantity, to determine exemption eligibility. The Tribunal in the present case preferred this 1998 decision over the older decision relied upon by the appellant, leading to the dismissal of the appeal.

In conclusion, the Tribunal upheld the decision of the lower appellate authority, allowing the splitting of clearance value to maximize exemption benefits under Notification No. 1/93-C.E. The Tribunal's preference for the 1998 decision over the older decision cited by the appellant resolved the conflicting interpretations and led to the dismissal of the Revenue's appeal.