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2008 (8) TMI 743 - AT - Central Excise
Issues: Grant of SSI benefit under Notification No. 175/86-CE dated 1-3-1986 for the years 1987-88 and 1988-89.
The judgment by the Appellate Tribunal CESTAT, Chennai involved a dispute regarding the grant of Small Scale Industries (SSI) benefit to the respondents for the years 1987-88 and 1988-89 under Notification No. 175/86-CE dated 1-3-1986. Initially, the case was remanded by the Tribunal to the original authority for reconsideration of the entitlement to SSI benefit. The remand order highlighted that the SSI unit's clearances for 1987-88 did not exceed Rs. 7.5 lakhs, which was crucial for determining eligibility. Subsequently, the original authority denied SSI benefit based on a finding that the clearances for 1987-88 exceeded the threshold. However, the Commissioner (Appeals) overturned this decision, emphasizing the Tribunal's earlier finding that the clearances were indeed below Rs. 7.5 lakhs. The Tribunal's remand order was deemed final and binding, preventing further inquiry into the clearances for 1987-88. Regarding the eligibility for SSI benefit, the Tribunal affirmed that the respondents met the criteria for the year 1987-88 by demonstrating clearances below Rs. 7.5 lakhs. This fulfillment of one condition extended the benefit to the subsequent year, 1988-89. The second condition required the total turnover to be below Rs. 15 lakhs for each commodity and below Rs. 30 lakhs for all commodities combined. The appellant failed to contest the satisfaction of this second condition by the respondents. Consequently, the challenge against granting SSI benefit for both financial years was dismissed by the Tribunal, upholding the respondents' eligibility based on the established criteria. In conclusion, the judgment clarified the entitlement to SSI benefit under specific conditions outlined in the notification, emphasizing the binding nature of the Tribunal's findings and the importance of meeting the prescribed thresholds for clearances and turnover to qualify for the benefit in question.
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