2016 (10) TMI 1166 - AT - Central Excise

Rectification of mistake - the issue of inclusion of value of exports goods and value of resale of duty paid goods was not considered - Held that - we observe that ld. Commissioner (Appeals) with proper application of mind dealt the issue very carefully and came to the conclusion that there is indeed resale of duty paid goods and exports clearances. Therefore the same is not includible in the threshold limit of ₹ 1 crore - ROM application allowed.

Summary

Issues:
Rectification of mistake regarding inclusion of value of exports goods and resale of duty paid goods in the aggregate value for calculating threshold exemption limit of ?1 crore.

Analysis:
The judgment revolves around the rectification of a mistake filed by the Revenue concerning the inclusion of the value of exports goods and resale of duty paid goods in the aggregate value for calculating the threshold exemption limit of ?1 crore. The Revenue contended that this issue was not considered in the Tribunal order dated 20-1-2016. The ld. Asstt. Commissioner (AR) representing the Revenue referred to the grounds of appeal where the issue was raised but not addressed in the previous order. The Tribunal acknowledged that the issue was not considered and reviewed the detailed findings given by the ld. Commissioner. The ld. Commissioner had carefully examined the matter and concluded that the resale of duty paid goods and export clearances should not be included in the threshold limit of ?1 crore. The Tribunal found no mistake in the findings of the ld. Commissioner and held that the Revenue's appeal on this issue was not sustainable. Consequently, the Tribunal rectified the previous order to reflect this clarification.

The ld. Commissioner's analysis highlighted that the appellant had provided evidence supporting their claim, including relevant documents like B/L for export and resale invoices. The authenticity of these documents was not challenged, and the ld. Commissioner found no reason to ignore them. It was established that the resale goods and export clearances should be deducted from the total clearance value when calculating the SSI benefit. The ld. Commissioner concluded that after granting the SSI benefit of ?1 crore, any remaining balance would be subject to Central Excise duty with interest. The ld. Commissioner set aside the Central Excise duty imposed other than the specified deductions. This thorough examination by the ld. Commissioner formed the basis for the Tribunal's decision to uphold the findings and rectify the previous order accordingly.

In conclusion, the Tribunal's judgment focused on rectifying a mistake regarding the inclusion of the value of exports goods and resale of duty paid goods in the calculation of the threshold exemption limit. The detailed analysis by the ld. Commissioner, supported by relevant evidence provided by the appellant, led to the Tribunal's decision that these values should not be included in the threshold limit of ?1 crore. The rectification of the previous order was deemed necessary to align with this clarification provided by the ld. Commissioner, ultimately disposing of the Revenue's appeal on this issue.