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2007 (2) TMI 571 - AT - Central Excise
Issues:
1. Extension of Stay Petition. 2. Availing small scale exemption for goods manufactured in Kolkata and Delhi units. Extension of Stay Petition: The Appellate Tribunal CESTAT, Kolkata, allowed the Miscellaneous Application filed by the appellants for extension of Stay Petition. The order was passed by Member (T) Chittaranjan Satapathy. Availing small scale exemption for goods manufactured in Kolkata and Delhi units: The case involved the appellants having two units in Kolkata and Delhi jurisdiction. The Delhi unit did not have SSI Registration, leading to duty payment without claiming small scale exemption. On the other hand, the Kolkata unit had SSI Registration and availed the small scale exemption under Notification 1/93. The Department contended that since exemption was not availed for the Delhi unit, the Kolkata unit cannot benefit from the small scale exemption. The appellant cited Tribunal decisions allowing small scale units to avail exemption for part of the goods. After considering the arguments and case records, the Tribunal found that Notification 1/93 permits small scale manufacturers to pay duty at their discretion. Referring to the Larger Bench's decision in a similar case, the Tribunal concluded that the appellants were eligible for small scale exemption for the Kolkata unit's clearances as the total clearances from both units did not exceed the exemption limit. Consequently, the impugned order was set aside, and the appeal was allowed with relief for the appellants. This judgment highlights the interpretation of Notification 1/93 regarding small scale exemption for manufacturers, emphasizing the discretion given to them in paying duty. It also underscores the Tribunal's reliance on precedent cases to support the appellants' eligibility for exemption despite clearances from multiple units. The decision showcases the importance of understanding statutory provisions and legal precedents in tax matters to determine the applicability of exemptions and duties accurately.
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